After surging in Q4, when Australia's employment growth averaged 32k which is equivalent to an annualized rate of 3.4%, employment stagnated over the balance of January and February.
The labor market is expected to have performed more closely in line with the longer-term trend in March and look for a gain of around 20k, equivalent to an annualized rate of 2.1%. Nevertheless, the year-on-year rate of employment growth would still slow to 1.1% from 1.3%.
"There is a scope for the unemployment rate to tick lower given that it was very close to the rounding point in February (6.253%), and in the light of strong growth in the labour force in Q4 which we expect to have moderated in March. In other words, we expect a fractional decline in the participation rate (64.60% from 64.62%)", notes Societe Generale in a report.
