Insights

Australia's unemployment rate has remained steady at 3.9% for the second consecutive month. Data released by the Australian Bureau of Statistics (ABS) on Thursday, January 18th, revealed that the country saw a decrease of 65,000 employed individuals and an increase of 1,000 unemployed individuals. Despite this, employment figures for December remained 52,000 higher than in September, with a monthly increase of around 32,000 jobs after seasonal adjustments.

David Taylor, head of labor statistics at the Australian Bureau of Statistics, stated that this indicates a fairly strong growth during the period of 2023. He mentioned, "The growth in employment in October and November, followed by a decrease in December, reflects a change in the timing of employment growth in the last few months of 2023 compared to previous years."

"Despite the relatively low unemployment and underemployment rates, the high labor force participation rate and the ratio of employed persons to the total population indicate that the labor market remains tight," Taylor added.

Before the release of these statistics, Prime Minister Anthony Albanese expressed that solving inflation issues often accompanies an increase in the unemployment rate. However, his government is focusing on addressing both issues concurrently. "It is very unusual for the unemployment rate to start with a 3," he told reporters in Melbourne, "We are looking at how to support employment while exerting downward pressure on inflation.