Aussie jobs reviewed: hours picking up, positive for economy - Westpac
|Analysts at Westpac noted the jobs data yesterday and offered a review.
Key Quotes:
"Total employment rose 42.0k compared the market’s forecast for 10k. In the month unemployment fell 0.1ppt to 5.5% as the participation rate nudged up 0.1ppt with a solid rise in the labour force limiting the impact of a well above trend rise in employment; at two decimal places the unemployment rate was 5.53%.
The Australian labour market went through a soft patch in 2016, particularly from August to November, but as we moved through 2017 there has been a distinct uplift in employment. In the last three months the annual pace lifted from 0.9%yr in Feb to 2.0%yr in May. Compare this to the 106.k gain, or 0.9%yr, in the year to Feb. In May the 42k gain in employment resulted in a 141.1k gain over the last three months or an average of 47k per month.
Full-time employment rose 52.1k following on from a -5.7k fall in April. In the year full-time employment gained 148k/1.8yr pace. Part-time employment fell -10.1k following an out sized 51.0k bump in April. In the year to May, part-time employment has lifted 48k outpacing full-time employment with a 2.2%yr pace.
By state, every mainland state reported a fall in unemployment except for NSW where the unemployment rate lifted 0.1ppt to 4.8% which is still well under the national average. By comparison total employment rose 6.9k in Vic, 5.4k in Qld, 5.2k in SA and 4.3k in WA.
Further signs of the overall strength of this report were the 1.9%mth jump in hours worked taking the annual pace to 2.3yr. This lift in hours worked was driven by a lift in both total employment and hours worked per person, 2.0%yr and 1.6%yr respectively.
Underemployment eases back a touch. The underemployment rate fell 0.1ppt to 8.8% with both male and female underemployment falling. However, in the last year the underemployment rate has significantly underperformed relative to the improvement in the unemployment rate."
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