Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Thursday, 15 September 2016

Unemployment rate at 37-month low

Full-time jobs

The ABS Labour Force figures reversed some of the previously lost full-time employment, with full-time jobs up by +11,500 in August, offset by a decrease of -15,400 in part-time positions.

Over the year to August the trend series for total employment has increased by +191,200 or +1.6 per cent, remaining well ahead of the rate of population growth. 

The seasonally adjusted unemployment rate fell again to 5.6 per cent in August, with the trend unemployment rate ticking down to its lowest level since July 2013. 

A look at the month by month seasonally adjusted figures for the unemployment rate shows that the headline rate has declined from 6.31 per cent in January 2015 to 5.63 per cent in August. 

At the state level trend unemployment rates are in a promising downtrend in New South Wales (5.1 per cent) and Victoria (5.7 per cent), but trending upwards in Western Australia (6.2 per cent).

Jobs are in MEL-SYD

The resources states are seeing their total employment figures pull back as major projects continue to transition from construction to production. 

Victoria has taken over the mantle as the king of employment growth over the year to August (+125k), with New South Wales (+66k) the only other state to record a strong annual result. 

Indeed the two most populous states have accounted for more than 100 per cent of the total jobs growth over the past year.

While Sydney and Melbourne lead the way, Western Australia and Tasmania have slipped into negative territory, and employment growth is also flat in South Australia. 

The wrap

Overall, it's good to see that the unemployment rate continues to fall, but underemployment is still rife, and the average number of hours worked has been fairly stagnant. 

Melbourne is the employment epicentre right now, with Sydney knocked into second place. Better beaches though.