December caps off a solid year for Australia’s labor market - Westpac

Justin Smirk at Westpac offers his afterthoughts on the Australian labor market report released earlier today.

Key Quotes:

“Total employment rose 61.6k compared the market’s 19k forecast and Westpac's +25k. In the month unemployment rose of 5.5% (5.55% at two decimal places vs. 5.41% in November) with a 0.2ppt gain participation driving a further 55.16k surge in the labour force. This surge in participation has been driven mostly by the incredible jump in female to a new record high of 60.6%.

December was the15th consecutive monthly gain in employment, on par with the record of 15 consecutive monthly employment gains set in June 1995. Can we see a new record set in January 2017? Given current momentum in the labor market, and on ongoing strength in the leading indicators, it has to be fair chance.

The Australian labor market gathered momentum through 2017 with employment growth accelerating from 0.9%yr in February to 3.3%yr in December. Total employment has grown 403.1k in the year.”