Interest rate cut seems a little further away as jobless rate plunges to 3.7 per cent
Australia’s jobless rate fell to 3.7 per cent in February, from 4.1 per cent in January, in a sign of ongoing resilience in the jobs market.
Australians queue at Centrelink during the COVID-19 pandemic. (Photo by Florent Rols / SOPA Images/Sipa USA)
The latest labour force release from the Australian Bureau of Statistics revealed an 116,000 rise in employment.
The participation rate rose 0.1 percentage point to 66.7 per cent.
“With employment growing by around 116,000 people, and the number of unemployed falling by 52,000 people, the unemployment rate fell to 3.7 per cent,” bureau head of labour statistics Bjorn Jarvis said.
The boost in employment in February followed a couple of weaker months triggered by a larger-than-usual number of people with a job waiting to start a new one, the bureau said.
The Reserve Bank of Australia expects a gradual softening in the labour market in the period ahead due to its interest rate hiking cycle aimed at bringing down inflation.
It has forecasted an unemployment rate of 4.2 per cent by the middle of the year and 4.3 per cent by the end of 2024.
