Australia’s unemployment rate stabilized at 3.5% in September, with employment gaining slightly.
data from Australian Bureau of Statistics (ABS) showed 900 jobs rose by 900 in the month, well below the 33,500 recorded in August, while the number of unemployed rose by 8,800.
Moreover, the employment and underemployment rates are stable at 66.6% and 6%, respectively.
“The unemployment rate rose by less than 0.1 percentage points, rounded to 3.5 percent, as employment increased by about 1,000 and unemployment rose by 9,000,” said the head of labor statistics at ABS. . Bjorn Jarvis Description.
Treasurer Jim Chalmers suspects the low unemployment rate is due to coronavirus-related absenteeism.
Jim Chalmers told ABC Radio, “One reason the unemployment rate is so low is that employers have had to build more workforces to make up for absenteeism, such as those related to COVID-19. That’s what it is,” he said.
Job market shows signs of cooling
Labor force figures for September showed that the job market remained competitive, but there were signs of cooling in job advertisements and vacancies.
report According to online employment marketplace Seek, job advertising volume fell 5.2% in September. However, this figure was 15.5% higher than a year ago.
“There has been a slight decline in ad numbers since May, but not enough to put an end to an incredibly tight market,” said Kendra Banks, managing director at Seek.
“All sectors are posting more job ads than before the pandemic.”
At the same time, posted salaries, as measured by the company, fell slightly in August, suggesting competition for skilled workers had begun to ease.
Job openings fell by 2% in the three months to August, but businesses are still affected by labor and skills shortages.
Australian Corporate Board Investigation Labor shortages have emerged as one of the country’s top concerns for business leaders.
Central bank concerns over low unemployment
Record-low unemployment has been welcomed by the Reserve Bank of Australia (RBA), but there are concerns that a tight labor market could increase pressure on wages and spur inflation. .
In a recent speech, RBA Deputy Governor Michelle Block A record low unemployment rate is starting to add to wage pressures, he said.
She said this is one of the reasons why more rate hikes are needed to contain inflationary pressures and bring inflation down to the 2-3% target range.
“Inflation is too high in Australia and is expected to rise further,” she said.
“Much of this can be explained by global factors such as supply chain disruptions and energy prices, but there is a key component of strong domestic demand.”