Why the new jobs figures justify the RBA’s concerns

While much of the increase in employment and fall in unemployment seen in February was due to people delaying their start or return to work, the underlying resilience of the labour market is still evident through strong hours worked and low under-utilisation, as discussed by Brendan Rynne and Mark Wright.

The seasonally-adjusted unemployment rate plummeted to 3.7 percent in February from 4.1 percent in January – significantly beating the consensus expectations of 4.0 percent. The figures justify the Reserve Bank of Australia’s (RBA) ongoing concerns over excess demand in the economy and labour market. Employment increased by 116,500 in February and was substantially stronger than consensus expectations of a 40,000 increase. While much of the increase in employment and fall in unemployment s...

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Authors: Brendan Rynne

Published Date: 22 March 2024