Employment takes a hit in July
Male workers account for most of the 16,000-job decline as Australia’s labour market softens
Australia’s employment market weakened in July, with total employment falling by 16,000 people, according to the latest figures from the Australian Bureau of Statistics (ABS).
At the same time, the number of unemployed people increased by 4,000, pointing to a softer labour market during the month.
Men drive most of the employment decline
The majority of the employment fall came from male workers, whose employment declined by 11,000 people in July.
Male part-time employment fell by 10,000, while full-time employment decreased by another 1,000.
Female employment also declined, although by a smaller 5,000 people. Female part-time employment fell by 22,000, partly offset by a 17,000 increase in full-time employment.
Participation rate also falls
The employment-to-population ratio declined by 0.2 percentage points to 63.9%, while the participation rate also fell by 0.2 percentage points to 66.9%.
The figures suggest fewer Australians were participating in the labour market during July, adding to signs of softer employment conditions.
However, the underemployment rate remained steady at 6.4% on a seasonally adjusted basis.
What investors should watch
The July figures highlight some moderation in Australia’s labour market, particularly with employment falling and participation easing.
Investors will be watching future employment data closely, as changes in labour-market conditions can influence household spending, economic growth and expectations around interest rates.
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