Labour force statistics for February 2022

Labour force statistics for February are out today and it’s pretty much universally good news.

Let’s hit the highlights:

> Headline unemployment is down to 4% (from 4.2% last month), the lowest level since just before the GFC in 2008.
> Total people employed was up another 77,400, with the increase driven by full-time employment (up 121,900), while part-time employment fell by 44,500. More people in full-time jobs is great news for job security. 
> The participation rate continued its upward trend, increasing from 66.2% to 66.4%, the highest level we’ve seen in a decade. 
> The underemployment rate was also down, a reflection of the increase in full-time employment. Falling 0.1% to 6.6%. Equalling the lowest rate in a decade. 
> The unemployment rate for women, at 3.8%, was the lowest since May 1974.

The only small blemish was that the number of employed people who worked no hours due to illness or sick leave remained high, up more than 80% on the long term average for February. While COVID case number have remained relatively low, it’s clear that isolation rules continue to have an impact on worker availability. This is likely to remain a problem for a while, as COVID cases again look to be on the rise and we are head into what is predicted to be a difficult Cold and Flu season.

While these figures are great, they do indicate that the economy is approaching capacity. This means we will see both accelerated wage growth and accelerated inflation until tightness in the employment market starts to ease. This means those tipping several interest rate rises this year are looking more and more likely to be correct.

Read the full report at: https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/feb-2022#underemployment