ABS reports more job growth in August

The ABS has reported another solid month of job growth in August.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian Bureau of Statistics (ABS) has reported the August 2018 job figures today. The trend participation rate increased by 0.2% to 65.7% according to the statistics.

Perhaps unsurprisingly for a country with a growing population, seasonally adjusted total employment increased by 44,000 people to 12,631,300. Part-time employment grew by 10,200 people to a total of 4,000,600 and full-time employment increased by 33,700 people to 8,630,700.

Unemployment increased 5,800 to 708,800. The number of unemployed people looking for full-time work decreased 7,500 to 494,800 and the number of unemployed people looking for part-time work increased 13,200 to 214,000.

The unemployment rate stayed at 5.3% and the monthly hours worked in all jobs increased 0.6 million hours (0.03%) to 1,750.9 million hours.

Whilst this isn't boom-time job numbers, it is a solid result for an economy that is supposedly slowing down and the housing market is falling.

Employment remaining high is a key part of bank loans continuing to be repaid and arrears staying low, so the job numbers should perk up management of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) who may be feeling under pressure from the Royal Commission.

It's also good news for businesses counting on discretionary spending remaining strong, such as JB Hi-Fi Limited (ASX: JBH) and some of Wesfarmers Ltd's (ASX: WES) subsidiaries.

Job-related businesses are clear beneficiaries from a strong job market like SEEK Limited (ASX: SEK).

Foolish takeaway

As long as the Australian job market remains strong, any type of economic downturn will be lessened. I'm pleased with these numbers and hopefully they continue to remain strong over the coming months.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »