Australia added more than 54,000 jobs in August that led to the jobless rate becoming stable at 5.6%, according to the Australian Bureau of Statistics (ABS).
Most of the new jobs comprise full-time positions for 40,100 people, while 14,100 workers filled part-time roles. The creation of more jobs will clearly help the economy. On the other hand, the need for more employment police checks will be subtle yet important for companies.
The increase in employment came as a surprise for economists since the job growth represented more than thrice their expected figure. Commonwealth Bank economist Gareth Aird said that the increase reflected ‘a gradual tightening in the labour market’.
Despite being steady, the addition of more jobs failed to lower the jobless rate. According to the ABS, the participation rate for people more than 15 years old rose 65.3%, which is the highest rate in the last five years. This inadvertently caused unemployment not to fall below 5.6% in August.
Much of the increase in jobs stemmed from more women that joined the workforce, according to Federal Employment Minister Michaela Cash. The 60% participation rate among women during the month occurred at a right time, given that they are 3.9% more likely to be jobless compared to men, she added.
On the other hand, the participation rate among men in the job market reached slightly above 70%. The overall rate in the country reached around 65%, according to the ABS.
The increase in more jobs served as good news for the Australian economy, as it indicated that businesses remain positive about growth prospects in the future. Even as the jobless rate remained quite high, the participation rate among Australians meant there are plenty of people wanting to seek employment.