| Consensus | Consensus Range | Actual | Previous | |
| Employment - M/M | 32,000 | 10,000 to 40,000 | 48,900 | 17,800 |
| Unemployment Rate | 4.1% | 4.1% to 4.1% | 4.3% | 4.1% |
| Participation Rate | 66.9% | 66.7% |
Highlights
Labour market conditions in Australia were mixed in February. The number of people employed in Australia rose by 48,900 persons in February after an increase of 17,800 persons in January. Full-time employment fell during the month, but this was outweighed by a big increase in part-time employment. Hours worked fell 0.2 percent on the month.
Today's data also show the unemployment rate rose from 4.1 percent in January to 4.3 percent in February. The participation rate rose from 66.7 to 66.9 percent.
At their policy meeting earlier this week, officials at the Reserve Bank of Australia judged that" labour market has tightened a little recently", reinforcing their concerns about the inflation outlook and supporting their decision to increase policy rates by 25 basis points. Today's data show some moderation in labour market pressures but will likely not be enough to shift the RBA's focus from other factors pushing up inflation.
Market Consensus Before Announcement
The consensus sees a moderate 32K rise in employment and no change in the jobless rate flat at 4.1 percent.
Definition
The Labour Force Survey is a key economic indicator giving an overall picture of employment and unemployment. Employment counts the number of paid employees working part-time or full-time in the nation's business and government establishments. The unemployment rate measures the number of unemployed as a percentage of the labour force.
Description
This report is used as an indicator of the health of the domestic economy. Employment trends highlight the strength in job creation and the implications for future sectoral activity. The unemployment rate is used as an indicator of tightness in labor markets and can foreshadow a future increase in wages. Labor force data provide investors with the earliest signs of industry performance. While other data are produced with a month or two delay, these data are available only a week to 10 days after the end of the latest month. Reactions can be dramatic - especially when the result is unanticipated.
The information in the report is invaluable for investors. By looking at employment trends in the various sectors, investors can take more strategic control of their portfolio. If employment in certain industries is growing, there could be investment opportunities in the firms within that industry.
The bond market will rally (fall) when the employment situation shows weakness (strength). The equity market often rallies with the bond market on weak data because low interest rates are good for stocks. But sometimes the two markets move in opposite directions. After all, a healthy labor market should be favorable for the stock market because it supports economic growth and corporate profits. At the same time, bond traders are more concerned about the potential for inflationary pressures.
The unemployment rate rises during cyclical downturns and falls during periods of rapid economic growth. A rising unemployment rate is associated with a weak or contracting economy and declining interest rates. Conversely, a decreasing unemployment rate is associated with an expanding economy and potentially rising interest rates. The fear is that wages will accelerate if the unemployment rate becomes too low and workers are hard to find.