Hours worked fall short of employment gains: report
Strong employment gains in May and June are "hopeful signs" of shifting dynamics in the labour market, according to Indeed economist Callam Pickering.
Data from the Australia Bureau of Statistics (ABS) revealed that employment rose by 50,200 people, with full-time employment going up by 43,300 in June.
"A strong economy typically creates a lot of high-quality, full-time opportunities, but that hasn't been the case for much of the past year," Pickering said in a statement. "Less than a third of employment gains over the past year have been full-time but strong full-time gains in both May and June is a hopeful sign that labour market dynamics have shifted."
These recent gains in employment are reflected in the 0.8% increase in seasonally adjusted monthly hours in June, according to the ABS.
Bjorn Jarvis, ABS head of labour statistics, said this was due to fewer people taking annual leave in June 2024.
"There were around 12.5% of people working fewer hours because they were on leave, compared with the pre-pandemic average for June of 14.5%. This contributed to the increase in hours worked this month," Jarvis said in a statement.
On a trend basis, however, there was a 0.3% increase in total hours worked in June, according to Indeed. They were also up 1.3% over the past year.
"Growth in hours worked has fallen short of employment gains over the past year (+2.8%), resulting in a decline in average hours worked per employee," Pickering said.
Average monthly hours worked also "declined consistently over the past two decades," according to the Indeed economist.
This likely reflects a "greater emphasis on work-life balance and flexibility and an increase in labour force participation by women," Pickering said.
"These trends were in flux throughout the pandemic and the early recovery but seem to be reverting towards more normal or sustainable levels."
