Australia: A new milestone for employment - Westpac

Elliot Clarke, Research Analyst at Westpac, suggests that the most notable outcome for Australia was the 16k employment gain this week, the 16th consecutive positive outcome – a new record.

Key Quotes

“The mix of jobs was weak in the month, with the loss of 50k full-time jobs offset by the creation of 66k part-time jobs. However, over the year, full-time employment growth remains very strong at 3.6%yr. By state, employment growth has eased where it has been strongest, Victoria and NSW. Meanwhile, Queensland’s resurgence is continuing – a strong justification for the nascent uptrend in population growth there to persist.”

“The unemployment rate and participation rate both ticked down in the month, the unemployment rate from a revised 5.6% in December to 5.5% currently. With ‘full employment’ likely at 5.0% or below, the current level of the unemployment rate suggests significant capacity remains, despite strong employment growth over the past two years. Our jobs index implies that employment growth will slow but remain strong over the coming six months. An eventual slowdown to a pace consistent with population growth (around 1.5%) is expected in 2019.”