In December 2024, Australia’s Unemployment Rate adjusted slightly rose to 4.0%, up from 3.9% in November, which had marked an eight-month low. This change met market expectations. The total number of unemployed individuals increased by 10.3 thousand, bringing the total to 604.1 thousand. A closer look reveals that the number of people seeking full-time jobs rose by 14.9 thousand, while those looking for part-time positions dropped by 4.5 thousands.

Employment Growth Surpasses Expectations

Despite the uptick in unemployment, employment numbers showed impressive growth. Employment in Australia increased by 56.3 thousand, reaching a new record of 14.58 million. This increase far exceeded forecasts, which predicted a rise of only 15 thousand. Compared to November’s 28.2 thousand rise, this was a notable improvement. Part-time employment surged by 80 thousand, reaching an all-time high of 4.55 million, although full-time employment saw a decline of 23.7 thousand, bringing the total to 10.04 million.

Participation Rate and Underemployment Trends

The participation rate, which measures the percentage of working-age individuals either employed or actively seeking work, edged up to 67.1%. This marks a return to the July 2024 peak and surpassed market forecasts of 67.0%. The increase in the participation rate indicates a slightly higher level of workforce engagement, continuing the positive trend seen in November. Additionally, the underemployment rate, which tracks those working part-time but seeking full-time work, decreased slightly to 6.0% from the previous 6.1%.

Read More : Australia Monthly CPI Indicator

Monthly Hours Worked See Significant Increase

One of the key highlights in the December data was the rise in monthly hours worked across all jobs. The total number of hours worked surged by 10 million, reaching a new high of 1,976 million. This increase in hours worked reflects a growing demand for labor and could be a sign of economic resilience, despite the modest rise in the unemployment rate. The shift in the labor market reflects both positive and challenging elements as Australia navigates its post-pandemic recovery.

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