The Australian labor market is showing signs of weakening as underemployment climbs, according to economist William Mitchell and Modern Monetary Theory.

The Australian labor market is showing signs of weakening as underemployment climbs, according to economist William Mitchell and Modern Monetary Theory.

# Australian Labour Market Shows Signs of Change in August 2024

The latest data released by the Australian Bureau of Statistics for August 2024 reveals some interesting trends in the labour market. Despite overall employment growth, the increase was mostly in part-time jobs, while full-time employment declined. The unemployment rate slightly decreased, but underemployment rose, indicating potential challenges in the labour market. Let’s dive deeper into the key findings and implications of the latest report.

## Key Highlights from the Latest ABS Labour Force Data:

– Employment rose by 47,500 (0.3 per cent) in August 2024. Full-time employment declined by 3.1 thousand, while part-time employment increased by 50.6 thousand.
– Unemployment fell by 10.5 thousand to 627,000 persons, resulting in an unemployment rate of 4.2 per cent.
– The underemployment rate rose by 0.2 points to 6.5 per cent, with a total of 975.6 thousand underemployed workers.
– The total labour underutilisation rate (unemployment plus underemployment) remained steady at 10.6 per cent, with 1.6 million people available and willing to work but unable to find sufficient employment.

## FAQs

### 1. What was the overall trend in employment for August 2024?

Employment in Australia saw a modest increase of 47,500, with a notable shift towards part-time jobs and a decline in full-time employment.

### 2. How did the unemployment rate change in August 2024?

The unemployment rate slightly decreased to 4.2 per cent, with 10.5 thousand fewer unemployed persons compared to the previous month.

### 3. What impact did underemployment have on the labour market?

Underemployment rates increased by 0.2 points to 6.5 per cent, highlighting a rise in individuals working fewer hours than desired due to economic factors.

### 4. Is Australia approaching full employment?

Despite claims of a ‘tight’ labour market, the data indicates that Australia is not near full employment, with a significant proportion of the working-age population facing unemployment or underemployment.

## Conclusion

The latest ABS Labour Force data for August 2024 paints a nuanced picture of the Australian labour market. While employment has grown, the increase in part-time jobs and underemployment raises concerns about the overall health of the economy. With a sizeable portion of the population still struggling to find adequate work, it is evident that Australia is not yet at full employment. As the situation continues to evolve, policymakers and employers will need to address the challenges faced by workers to ensure a more resilient and inclusive labour market.


(c) Copyright 2024 William Mitchell. All Rights Reserved.

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