Employment grows as jobless rate rises to 5.6pc in February

Australia’s jobless rate rose to a higher-than-expected 5.6pc in February, but a further 17,500 jobs were created.

A Centrelink office in Adelaide. Pic: AAP

Australia’s economy remained a steady engine for job creation in February, with a further 17,500 jobs added during the month.

The country’s unemployment rate rose to a higher-than-expected 5.6 per cent during the month from 5.5 per cent in January, according to government data.

Economists had expected an unemployment rate of 5.5 per cent in February.

The number of people in full-time work rose by 64,900, while those in part-time work fell by 47,400.

The workforce participation rate rose to 65.7 per cent in February from 65.6 per cent in January, the report showed.

Australia’s job market has been a bright spot for the economy with more than 400,000 jobs added in 2017 amid some of the strongest conditions for business on record.

Interest rates remain at record lows, state governments are spending big on new public works, while commodity prices have been elevated. Together, these have helped to drive an expansion of the workforce.

Still, underemployment remains a key issue for policy makers. The data for February showed the labour force underemployment rate increased 0.1 points to 8.4 per cent.

The labour underutilization rate increased by 0.1 points to 13.9 per cent.

With spare capacity in the job market still high, full employment is some time away, likely leaving wages growth flat and interest rates on hold for some time.

Earlier, a survey by employment firm Seek showed demand for mining and engineering workers is heating up again.

Seek’s data showed new job ads in Australia have jumped 16 per cent compared with a year ago, led by mining, agriculture and engineering.

Mining recorded a 45 per cent jump in job listings on-year, while engineering job ads were up 63% amid roaring infrastructure spending by the federal and state governments.

The Seek data come after the Resefve Bank pointed on Tuesday to increased signs of labour shortages in the key mining states of Queensland and Western Australia.

Dow Jones Newswires