WA unemployment down, still up on national figure

Western Australia’s unemployment rate fell 0.2 percentage points last month, putting it among the top performing states for annual employment growth, according to new data.

WA’s unemployment rate fell to 5.7 per cent in September, down from 5.9 per cent in the previous month in seasonally adjusted terms, according to the latest figures by the Australian Bureau of Statistics.

About 8,300 people were employed in the state last month, with WA recording the largest increase in the seasonally adjusted participation rate of all states, up 0.2 percentage points.

In trend terms, WA was one of the top four states in terms of annual growth in employment figures, up 2.9 per cent. It was behind Queensland, Tasmania and Victoria.

The trend participation rate in WA was up 0.1 percentage point.

On a national basis, the trend unemployment rate fell by 0.2 per cent over the past year to 5.5 per cent in September, the lowest rate recorded since March 2013.

“The trend unemployment rate had been hovering in the range of 5.6 per cent to 5.8 per cent for almost two years, but has now dropped to a four-year low of 5.5 per cent,” ABS chief economist Bruce Hockman said.

The national trend participation rate remained steady at 65.2 per cent.

Australian Institute of Company Directors chief economist Stephen Walters said the improving annual rate of jobs growth was increasing the likelihood of a 2018 interest rate rise.

"The main takeaway is that the improvement in the labour market has been sustained now for the best part of a year, so this is no flash in the pan," he said.

However, JP Morgan analyst Ben K Jarman said Australia's unemployment was range-bound and could remain so for the near future.

"We expect it to hold between 5.5 per cent to 5.75 per cent for some time, driven by sub-trend growth and the lack of clear direction in leading indicators like job ads, business surveys and welfare claims," he said.