Australians working more jobs, longer hours, job figures reveal
The unemployment rate remained steady for August but there are signs that Australians are working more jobs and longer hours, says BDO.
The unemployment rate remained at 3.7 per cent in August, according to data released by the Australian Bureau of Statistics (ABS) yesterday.
Employment increased by around 65,000 people but the number of unemployed only dropped slightly by around 3,000 people.
ABS head of labour statistics Bjorn Jarvis said the large increase in employment in August came after a small drop in July around the school holiday period.
“Looking over the past two months, the average employment growth was around 32,000 people per month, which is similar to the average growth over the past year,” said Mr Jarvis.
“The employment-to-population ratio rose 0.1 percentage point to 64.5 per cent, around the record high in June. The participation rate also increased, up to a record high of 67.0 per cent in August, which, together with the high employment-to-population ratio, continues to reflect a tight labour market.”
While monthly hours worked decreased 0.5 per cent from the previous month, hours worked were 3.7 per cent higher in August 2023 compared with August 2022.
The number of hours worked has increased at a faster rate than the 3 per cent annual employment.
“The strength in hours worked over the past year, relative to employment growth, shows the demand for labour is continuing to be met by people working more hours, to some extent,” said Mr Jarvis.
BDO Economics partner Anders Magnusson said while a low unemployment rate usually indicates that things are good for households, the current rate is accompanied by high multiple job holdings and increasing hours worked per employee.
“With costs rising more quickly than wages, Australians are working more jobs and longer hours to make ends meet,” said Mr Magnusson.
Mr Magnusson said he did not expect the RBA to make any further interest rate hikes in this cycle despite unemployment remaining low.
“Simultaneously low unemployment should be viewed by the RBA as a good thing rather than an inflation risk. Especially as wages have continued to grow by less than inflation over the last year,” he said.
CreditorWatch chief economist Anneke Thompson noted that underemployment continued to rise in August from 6.4 to 6.6 per cent, which suggests a larger proportion of workers are looking for more hours.
Ms Thompson said with business activity declining, particularly among small businesses, the rate of underemployment will continue to rise in line with current trends.
ASPL Group chief executive Kris Grant noted that most of the job growth in August was in part-time jobs, with part-time employment surging by 62,100 to 4,258,100 people.
“That partly reflects more women entering the workforce as higher living costs, including much higher mortgage repayments, force them to earn an income. The emergence of more flexible working arrangements in Australia has also helped to boost female workforce participation,” said Ms Grant.
“Given the tightness of the labour market, some employers will need to look inwards and invest in their existing workforce to overcome skills gaps and train existing workers to improve the supply of skills they need now and in the future. Many employers will also be forced to pay higher wages in light of the current skills shortage for many trade and professional workers.”
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