Economy now has no spare capacity as unemployment rate hits landmark sub-4 percent

The data reveals that firms are partially compensating for the lack of employees by increasing hours worked, writes Sarah Hunter.

After hovering close for a couple of months, the national unemployment rate has now dropped below 4 percent (to 3.9 percent). The Australian Bureau of Statistics (ABS) confirmed that data revisions meant this landmark rate – the lowest since 1974 – was actually achieved in March. More importantly, the data also indicates that the economy is now effectively operating with no spare capacity. Despite job advertisements remaining at record highs and a higher-than-average proportion of business...

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Authors: Sarah Hunter

Published Date: 20 May 2022