Australia jobs February: Employment falls by 53,000 as older workers leave the market, ABS says

Australia’s remarkable run of strong jobs data hit a wall in February, with employment falling by almost 53,000 positions.

But the unemployment rate remained at 4.1 per cent, according to seasonally adjusted Australian Bureau of Statistics figures released on Thursday.

Both employment and unemployment fell as a significant number of Australians left the jobs market — meaning they are no longer looking for work or working.

ABS head of labour statistics Bjorn Jarvis said fewer older workers returned to jobs in February.

“This follows higher levels of employment in these age groups in recent years, particularly in 2024, alongside growth in the employment-to-population ratio over the last few years,” Mr Jarvis said.

“In contrast, we continue to see growth in employment for people aged between 15 and 54 over the year.”

The market is still much stronger than before the pandemic, however.

The latest jobs data came just hours after the US Federal Reserve kept interest rates on hold and said “economic activity has continued to expand at a solid pace”. America’s jobs market had also stabilised, the Fed said.

Australian financial markets judge a rate reduction at the Reserve Bank’s meeting on April 1 will be unlikely, with just an 8 per cent chance of a cut.

But borrowers were given a dose of relief in February when the RBA lowered the cash rate by 25 basis points to 4.1 per cent.

More than 440,000 jobs were created through 2024 and the strong employment market has made the RBA cautious about cutting rates too fast.

Treasurer Jim Chalmers will next week bring down his fourth Budget ahead of an election due by May.

More to come