Australia's January employment growth falls short of expectations, but the labor market remains resilient

LootboxPhobia · 2026-02-19T03:20:23+00:00

Australia's January unemployment rate remains at 4.1%, with employment growth slowing down. The economy added 17,800 jobs, below expectations, with full-time jobs increasing by 50,500 and part-time jobs decreasing by 33,000. The labor force participation rate fell back to 66.7%, while working hours increased. The Reserve Bank of Australia raised interest rates to 3.85% and plans to further hike rates to combat inflation.

LootboxPhobia

2026-02-19 03:20:23

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Investing.com - Official data shows that Australia’s unemployment rate remained steady in January, with employment growth slowing but still resilient, highlighting that the labor market remains tight.

According to the Australian Bureau of Statistics, employment increased by 17,800 people in January compared to December, below the market expectation of a 20,000 increase, and significantly slower than the surge of 65,200 in December.

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The employment growth was mainly driven by a surge of 50,500 full-time jobs, offset somewhat by a decrease of 33,000 part-time jobs.

The seasonally adjusted unemployment rate held steady at 4.1%, in line with expectations, while the labor force participation rate fell from a record high of 66.7% a year ago.

Working hours in January increased by 0.6%, with full-time hours rising by 0.7%, indicating that employers are relying more on existing employees amid a decrease in reported working hours during the summer holiday season.

On the day of this data release, the Reserve Bank of Australia decided to raise the cash rate to 3.85% this month, citing persistent inflation and a still-tight labor market.

The central bank has signaled further rate hikes this year to bring inflation back to target levels.

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