Australian labour market – subdued and weaker in 2018
The latest labour force data released today by the Australian Bureau of Statistics – Labour Force data – for February 2018 shows that the Australian labour market labour market has weakened at the start of 2018. Employment growth was again very modest in February 2018 and participation only marginally rose. The rise in unemployment was due to employment growth failed to keep up with the underlying population growth although the slight uptick in participation exacerbated this a bit. The teenage labour market stood still although this cohort did participate in the overall full-time employment growth. Further, underemployment rose marginally as did the broad labour underutilisation rate in the three months to February 2018. Overall, my assessment is that the Australian labour market has a lot of slack remaining. It is not close to full employment yet.