The ABS released their October labour force survey earlier today. The headlines read that the unemployment rate held steady at 6.2% with 24,100 net new jobs created. Here’s what’s under the hood, primarily in chart form.
Thanks to rounding the headline unemployment rate held at 6.2%. Without rounding the rate increased to 6.2446%, up from 6.2027% in September. This is the highest level since September 2002. In better news the participation and employment-to-population rates ticked higher to 64.5% and 60.6% respectively although both remain near lows last seen in the mid-2000’s.
The total number of unemployed persons rose by 7,100 to 772,100. This is the highest since July 1997. Unemployment amongst males fell fractionally, albeit close to highs last seen in 1998, with female unemployment rising to 364,200, the most seen since January 1994. In annualised terms total numbers of unemployed have been increasing since September 2012.
Total employed persons rose by 24,100 to 11,592,200, just shy of the all-time peak struck in July this year. As a percentage of total employed part-time workers now make up 30.5%. This is fractionally below the record 30.6% level hit in January this year.
In terms of the breakdown between full and part time jobs created the former has risen by 97,000 in 2014, outpacing a 25,700 increase in part-time roles. While net job creation has risen every year between 2008-2014, only once, in 2010, has the number of jobs exceeded the total increase in the size of the labour force.
While a quarterly release, given the problems with the seasonally adjusted figures earlier in the year, it must be noted that labour market underutilisation rose to 13.7% in August. This is the highest level seen since May 1999. Underutilisation amongst those aged 15-24 jumped to 29%, a level last seen in February 1994.
While lead labour market indicators such as ANZ job ads have improved, it’s clear that the increase is being matched by the rise in unemployed numbers. For every job advertised there are 5.6 unemployed persons. This ratio is higher than period covering the global financial crisis and remains around levels last seen in early 2004.
To view the full ABS release follow this link: