Australia labour market weaker with participation falling

The latest labour force data released today by the Australian Bureau of Statistics – Labour Force data – for October 2017 shows that total employment growth was weak although there was relatively good full-time employment growth. Unemployment (and the rate) fell, but only because the participation rate fell. If not, then the unemployment rate would have risen marginally. So no signs of a sustained growth path is emerging. Broad labour underutilisation (underemployment and unemployment) was at 13.3 per cent summing to 1,724 thousand persons, which tells you that there is still considerable slack in the labour market. The teenage labour market deteriorated in October although this cohort shared in the full-time employment growth, which is a good outcome. Overall, my assessment is that there is no discernible trend in the Australian labour market. It shows signs of strength one month, and then backs away from that the next. We are not in a position to say that there is a sustained growth path ahead.

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