Australia's unemployment rate rose to 4.3% in February, with a decrease in full-time jobs.

Investing.com — Official Australian data released on Thursday shows that the February unemployment rate increased more than expected, with a decline in full-time jobs offsetting overall employment growth, indicating that the labor market is gradually softening.

According to the Australian Bureau of Statistics, employment rose by 48,900 in February, surpassing the market expectation of a 20,800 increase and also higher than the 26,100 gain in January.

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However, full-time jobs decreased by 30,500, while part-time jobs surged by 79,400, suggesting that most of the new jobs are part-time positions.

The unemployment rate rose from 4.1% in January to 4.3%, exceeding the market expectation of remaining steady, with the number of unemployed increasing by 35,000.

The labor force participation rate also increased from 66.7% to 66.9%, reflecting more people entering or re-entering the labor market.

Sean Crick, head of labor statistics at the Australian Bureau of Statistics, stated that compared to recent years, fewer unemployed individuals who were waiting to start work in January transitioned into employment in February, while the number remaining unemployed that month increased.

Working hours in February declined by 0.2%, indicating that despite overall employment data remaining solid, labor demand has slowed. According to the Australian Bureau of Statistics, older workers, especially those aged 65 and above, account for most of the growth in part-time employment.

This mixed report is unlikely to substantially alter market expectations regarding the Reserve Bank of Australia’s recent policy stance, which earlier this week raised interest rates and issued cautious signals amid inflation still above target.