Australia‘s Unemployment Rate Dips to 4.3 Per Cent as Employment growth Slows
Australia’s unemployment rate edged down to 4.3 per cent, even as employment growth continues to gradually slow, according to recent data.
EY chief economist Cherelle Murphy noted teh Reserve Bank of Australia (RBA) has previously indicated the economy is nearing its supply capacity, potentially limiting further cuts to the cash rate without triggering inflation. “Recent data showing a surprise uptick in underlying inflation and a continuation of the tight jobs market means there may be no more interest rate cuts in the foreseeable future,” she said.
However, Murphy also highlighted a deceleration in employment growth over the past two years. Employment growth has slowed to 1.6 per cent in annual terms, likely due to easing demand for labor in sectors like health, education, and general government services.
Callam pickering, Asia Pacific economist at global job site Indeed, concurred with this assessment. “Australian employment growth has been sluggish this year,” he said.
Through the first ten months of the year, employment increased by just 160,000 people, a notable decrease compared to the 325,000 increase recorded during the same period last year. Pickering attributed the slowdown primarily to reduced hiring in health care and social assistance – a sector that fueled much of Australia’s post-pandemic job growth.
“Thus far the private sector, which has been heavily impacted by a challenging economic habitat, hasn’t been able to fill the gap created by reduced hiring elsewhere,” he said.
Related: Australia’s property market is seeing rising demand, with a rise in both first home buyers and investors pushing up house prices.
