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Writer's pictureRoyce Advisory

Labour Market Update... Mixed Signals?

Australia's labour market continues to present a complex picture as outlined in the July 2024 data:


- Employment rose by 58.2k, surpassing expectations

- Unemployment rate ticked up to 4.2% from 4.1%

- Participation rate hit a record high of 67.1%


What's driving these trends?


1️⃣ Strong full-time employment growth (+60.5k)

2️⃣ Record-high participation rate, possibly due to cost-of-living pressures

3️⃣ Slower growth in hours worked (0.9%) compared to employment (3.2%)


The labour market's resilience amidst slow economic growth is puzzling economists. With the RBA closely watching these figures, what might this mean for future monetary policy decisions?




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