Unemployment in Australia reaches 4.1% in April, participation rates follow suit

The seasonally adjusted unemployment rate climbed by 0.2 percentage points to 4.1 per cent in April, compared to a revised 3.9 per cent in March, according to data released by the Australian Bureau of Statistics (ABS),

Bjorn Jarvis, ABS head of labour statistics, commented on the figures, stating, "With employment increasing by approximately 38,000 individuals and the number of unemployed rising by 30,000 individuals, the unemployment rate reached 4.1 per cent, while the participation rate rose to 66.7 per cent." 

Jarvis further elaborated, "The 30,000-person increase in unemployment reflects a larger pool of individuals actively seeking employment, as well as more individuals indicating they have secured a job awaiting commencement." 

"In April, both employment and unemployment witnessed an increase, contributing to a 0.1 percentage point rise in the participation rate to 66.7 per cent. Since March 2023, this rate has consistently remained relatively high, above 66.5 per cent." 

"Furthermore, the employment-to-population ratio held steady at 64.0 per cent in April, indicating that recent employment growth aligns closely with population expansion. This suggests that while the labour market remains tight, it's slightly less constrained compared to late 2022 and early 2023," Mr. Jarvis concluded. 

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The seasonally adjusted monthly hours worked showed no significant change from March to April. Bjorn Jarvis commented on this trend, stating, "The seasonal fluctuation in hours worked in April 2024 mirrored the typical pattern observed around the Easter holidays." 

"In contrast to the previous year, where fewer individuals than usual took time off during the Easter holidays in April 2023, the percentage of individuals working reduced hours in April 2024 resembled pre-pandemic levels more closely," Mr. Jarvis remarked. 

Underemployment and underutilisation both saw an uptick in April 2024, with the seasonally adjusted underemployment rate increasing by 0.2 percentage points to 6.6 per cent. Although this rate has climbed by 0.4 percentage points since April 2023, it remains notably lower than the figure recorded in March 2020 by 2.1 percentage points. 

Similarly, the underutilisation rate, a combined metric of unemployment and underemployment, saw a 0.3 percentage point rise to 10.7 per cent. Despite being 0.8 percentage points higher than in April 2023, it's significantly lower by 3.3 percentage points compared to March 2020. 

Examining the underlying trend data, the trend unemployment rate held steady at 4.0 per cent in April. In trend terms, employment experienced a modest growth of 31,000 people, amounting to a 0.2 per cent increase. 

Bjorn Jarvis noted, "The uptick in trend employment for April closely aligns with the average seen over the two decades before the pandemic." Additionally, in trend terms, there was a 0.4 per cent increase in hours worked between March and April. 

Recent trend data indicates a recovery, with hours worked now more closely aligned with employment growth since December 2023. Furthermore, it stands 0.7 per cent above the previous peak in the trend series recorded in June 2023.