Australia’s labour market likely to be robust

Australia's total employment in December declined 1000, as compared with a market median of a decline of 10,000 and Westpac's estimate of a decline of 17,000. However, the country is expected to have a strong labour market outside of West Australia. The country's total employment increased to 301.3k, up 2.6% y/y in the year to December. Australia's employment in September had grown 2% y/y and in November by 3% y/y.

Full-time employment grew by 17,600 to 187,200, whereas part-time employment dropped by 18,500 to 114,100. In 2015, male employment rose 122,100, up 1.9% y/y, while female employment grew 179,300, up 3.4% y/y, consistent with gradual shift in employment to service sectors, mainly in education, health and hospitality. The participation rate declined slightly to 65.15% from 65.28%. Australia's unemployment rate was steady at 5.8%.

However, the employment data indicates a positive outcome and the country will have a strong labour market. The factors pointing to a stronger labour market are other optimistic labour market indicators, strong growth in NSW where the unemployment rate has hit a national low of 5.2%. Also, the pace of employment growth of the state is a strong 4.4% y/y.