Labour market stays tight despite surprise drop in jobs
A surprise fall in jobs will do little to further improve the prospects of a Reserve Bank rate cut as the central bank weighs up the impact of a tight labour market.
Australia's unemployment rate held steady at 4.1 per cent in May, but 2500 jobs dropped out of the economy, the Australian Bureau of Statistics reported on Thursday.
Despite the result confounding forecasts of a 21,200 gain in employment, economists don't expect the RBA to read too much into it as it followed a jump of 87,600 jobs in April.
The fall in employment suggested some "payback" in the labour market, IG market analyst Tony Sycamore said.
Employment was still up by 2.3 per cent since May 2024, a rise bigger than the pre-pandemic, 10-year average annual growth rate of 1.7 per cent, bureau head of labour statistics Sean Crick said.
"This fall in employment, combined with a drop in unemployment of 3000 people, meant that the unemployment rate remained steady at 4.1 per cent for May," he said.
The volatility in employment figures has not been reflected in the jobless rate, which has held within a tight 3.9 to 4.4 per cent range since March 2024.
The participation rate fell 0.1 per cent to 67 per cent.
"Together, today's numbers imply the labour market is continuing to gradually cool," Mr Sycamore said.
The Reserve Bank watches the labour market closely as it is a key influence on inflation.
Mr Sycamore expects the RBA to lower interest rates by 25 basis points at its next board meeting in July, but the rates market marginally reduced the odds of a July cut to 63 per cent following the latest release.
ANZ economists Aaron Luk and Adam Boyton said the labour market was tracking healthier in the June quarter than the RBA expected in its May forecast.
But they expect the central bank to ignore some of the noise of the fluctuating employment growth figures.
"The unemployment rate has averaged 4.07 per cent over the June quarter so far versus the RBA's forecast of 4.2 per cent," they said, while employment growth was also tracking higher than forecasts.
"These aren't large differences, but they do show a better near-term labour market picture than the RBA's starting point in the May Statement on Monetary Policy.
"That said, we suspect these data won't sway the market or analysts one way or another on the July RBA board meeting."
Treasurer Jim Chalmers said low unemployment was one of the best defences against uncertainty in the global economy.
"While other countries have sacrificed much higher unemployment for progress on inflation, Australia has been able to preserve the gains we've made in our labour market at the same time as we've got inflation down and jobs up," he said.
Meanwhile, population growth slowed to 0.1 percentage points to 91,133 in the final three months of 2024, as net overseas migration dropped by a fifth.
Alongside the slowdown in immigration, a recent recovery in dwelling approvals meant the pace of new housing entering the market was finally on track to meet growth in underlying demand, AMP economist My Bui said.
Australia's population was just over 27.4 million people at the end of 2024, the bureau said.
Queensland and Western Australia were the only jurisdictions to experience positive net interstate migration, while NSW was the biggest loser.
More than 28,000 people abandoned the nation's first state for cheaper housing markets.
A surprise fall in jobs will do little to further improve the prospects of a Reserve Bank rate cut as the central bank weighs up the impact of a tight labour market.
Australia's unemployment rate held steady at 4.1 per cent in May, but 2500 jobs dropped out of the economy, the Australian Bureau of Statistics reported on Thursday.
Despite the result confounding forecasts of a 21,200 gain in employment, economists don't expect the RBA to read too much into it as it followed a jump of 87,600 jobs in April.
The fall in employment suggested some "payback" in the labour market, IG market analyst Tony Sycamore said.
Employment was still up by 2.3 per cent since May 2024, a rise bigger than the pre-pandemic, 10-year average annual growth rate of 1.7 per cent, bureau head of labour statistics Sean Crick said.
"This fall in employment, combined with a drop in unemployment of 3000 people, meant that the unemployment rate remained steady at 4.1 per cent for May," he said.
The volatility in employment figures has not been reflected in the jobless rate, which has held within a tight 3.9 to 4.4 per cent range since March 2024.
The participation rate fell 0.1 per cent to 67 per cent.
"Together, today's numbers imply the labour market is continuing to gradually cool," Mr Sycamore said.
The Reserve Bank watches the labour market closely as it is a key influence on inflation.
Mr Sycamore expects the RBA to lower interest rates by 25 basis points at its next board meeting in July, but the rates market marginally reduced the odds of a July cut to 63 per cent following the latest release.
ANZ economists Aaron Luk and Adam Boyton said the labour market was tracking healthier in the June quarter than the RBA expected in its May forecast.
But they expect the central bank to ignore some of the noise of the fluctuating employment growth figures.
"The unemployment rate has averaged 4.07 per cent over the June quarter so far versus the RBA's forecast of 4.2 per cent," they said, while employment growth was also tracking higher than forecasts.
"These aren't large differences, but they do show a better near-term labour market picture than the RBA's starting point in the May Statement on Monetary Policy.
"That said, we suspect these data won't sway the market or analysts one way or another on the July RBA board meeting."
Treasurer Jim Chalmers said low unemployment was one of the best defences against uncertainty in the global economy.
"While other countries have sacrificed much higher unemployment for progress on inflation, Australia has been able to preserve the gains we've made in our labour market at the same time as we've got inflation down and jobs up," he said.
Meanwhile, population growth slowed to 0.1 percentage points to 91,133 in the final three months of 2024, as net overseas migration dropped by a fifth.
Alongside the slowdown in immigration, a recent recovery in dwelling approvals meant the pace of new housing entering the market was finally on track to meet growth in underlying demand, AMP economist My Bui said.
Australia's population was just over 27.4 million people at the end of 2024, the bureau said.
Queensland and Western Australia were the only jurisdictions to experience positive net interstate migration, while NSW was the biggest loser.
More than 28,000 people abandoned the nation's first state for cheaper housing markets.
A surprise fall in jobs will do little to further improve the prospects of a Reserve Bank rate cut as the central bank weighs up the impact of a tight labour market.
Australia's unemployment rate held steady at 4.1 per cent in May, but 2500 jobs dropped out of the economy, the Australian Bureau of Statistics reported on Thursday.
Despite the result confounding forecasts of a 21,200 gain in employment, economists don't expect the RBA to read too much into it as it followed a jump of 87,600 jobs in April.
The fall in employment suggested some "payback" in the labour market, IG market analyst Tony Sycamore said.
Employment was still up by 2.3 per cent since May 2024, a rise bigger than the pre-pandemic, 10-year average annual growth rate of 1.7 per cent, bureau head of labour statistics Sean Crick said.
"This fall in employment, combined with a drop in unemployment of 3000 people, meant that the unemployment rate remained steady at 4.1 per cent for May," he said.
The volatility in employment figures has not been reflected in the jobless rate, which has held within a tight 3.9 to 4.4 per cent range since March 2024.
The participation rate fell 0.1 per cent to 67 per cent.
"Together, today's numbers imply the labour market is continuing to gradually cool," Mr Sycamore said.
The Reserve Bank watches the labour market closely as it is a key influence on inflation.
Mr Sycamore expects the RBA to lower interest rates by 25 basis points at its next board meeting in July, but the rates market marginally reduced the odds of a July cut to 63 per cent following the latest release.
ANZ economists Aaron Luk and Adam Boyton said the labour market was tracking healthier in the June quarter than the RBA expected in its May forecast.
But they expect the central bank to ignore some of the noise of the fluctuating employment growth figures.
"The unemployment rate has averaged 4.07 per cent over the June quarter so far versus the RBA's forecast of 4.2 per cent," they said, while employment growth was also tracking higher than forecasts.
"These aren't large differences, but they do show a better near-term labour market picture than the RBA's starting point in the May Statement on Monetary Policy.
"That said, we suspect these data won't sway the market or analysts one way or another on the July RBA board meeting."
Treasurer Jim Chalmers said low unemployment was one of the best defences against uncertainty in the global economy.
"While other countries have sacrificed much higher unemployment for progress on inflation, Australia has been able to preserve the gains we've made in our labour market at the same time as we've got inflation down and jobs up," he said.
Meanwhile, population growth slowed to 0.1 percentage points to 91,133 in the final three months of 2024, as net overseas migration dropped by a fifth.
Alongside the slowdown in immigration, a recent recovery in dwelling approvals meant the pace of new housing entering the market was finally on track to meet growth in underlying demand, AMP economist My Bui said.
Australia's population was just over 27.4 million people at the end of 2024, the bureau said.
Queensland and Western Australia were the only jurisdictions to experience positive net interstate migration, while NSW was the biggest loser.
More than 28,000 people abandoned the nation's first state for cheaper housing markets.
A surprise fall in jobs will do little to further improve the prospects of a Reserve Bank rate cut as the central bank weighs up the impact of a tight labour market.
Australia's unemployment rate held steady at 4.1 per cent in May, but 2500 jobs dropped out of the economy, the Australian Bureau of Statistics reported on Thursday.
Despite the result confounding forecasts of a 21,200 gain in employment, economists don't expect the RBA to read too much into it as it followed a jump of 87,600 jobs in April.
The fall in employment suggested some "payback" in the labour market, IG market analyst Tony Sycamore said.
Employment was still up by 2.3 per cent since May 2024, a rise bigger than the pre-pandemic, 10-year average annual growth rate of 1.7 per cent, bureau head of labour statistics Sean Crick said.
"This fall in employment, combined with a drop in unemployment of 3000 people, meant that the unemployment rate remained steady at 4.1 per cent for May," he said.
The volatility in employment figures has not been reflected in the jobless rate, which has held within a tight 3.9 to 4.4 per cent range since March 2024.
The participation rate fell 0.1 per cent to 67 per cent.
"Together, today's numbers imply the labour market is continuing to gradually cool," Mr Sycamore said.
The Reserve Bank watches the labour market closely as it is a key influence on inflation.
Mr Sycamore expects the RBA to lower interest rates by 25 basis points at its next board meeting in July, but the rates market marginally reduced the odds of a July cut to 63 per cent following the latest release.
ANZ economists Aaron Luk and Adam Boyton said the labour market was tracking healthier in the June quarter than the RBA expected in its May forecast.
But they expect the central bank to ignore some of the noise of the fluctuating employment growth figures.
"The unemployment rate has averaged 4.07 per cent over the June quarter so far versus the RBA's forecast of 4.2 per cent," they said, while employment growth was also tracking higher than forecasts.
"These aren't large differences, but they do show a better near-term labour market picture than the RBA's starting point in the May Statement on Monetary Policy.
"That said, we suspect these data won't sway the market or analysts one way or another on the July RBA board meeting."
Treasurer Jim Chalmers said low unemployment was one of the best defences against uncertainty in the global economy.
"While other countries have sacrificed much higher unemployment for progress on inflation, Australia has been able to preserve the gains we've made in our labour market at the same time as we've got inflation down and jobs up," he said.
Meanwhile, population growth slowed to 0.1 percentage points to 91,133 in the final three months of 2024, as net overseas migration dropped by a fifth.
Alongside the slowdown in immigration, a recent recovery in dwelling approvals meant the pace of new housing entering the market was finally on track to meet growth in underlying demand, AMP economist My Bui said.
Australia's population was just over 27.4 million people at the end of 2024, the bureau said.
Queensland and Western Australia were the only jurisdictions to experience positive net interstate migration, while NSW was the biggest loser.
More than 28,000 people abandoned the nation's first state for cheaper housing markets.
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The Advertiser
17 hours ago
- The Advertiser
Australian stock market snaps five-week winning streak
Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents
Perth Now
20 hours ago
- Perth Now
State Aussies are leaving in droves
More people are fleeing NSW than any other state in Australia. Population data released by the Australian Bureau of Statistics this week shows 28,118 people left NSW in 2024. Western Australia tipped over three million people for the first time as the resource-rich state recorded the highest nationwide growth rate. At the end of 2024, 27.4 million people called Australia home, an increase of 445,900 on the previous year and representative of a 1.7 per cent increase. Commonwealth Bank economist Lucinda Jerogin said population growth had slowed quicker than anticipated on the back of the post-pandemic peak. This sea of blue is not streaming into the State of Origin, instead they are headed for a Melbourne versus Collingwood AFL match. David Crosling / NewsWire Credit: News Corp Australia 'A slowdown in natural increase continues to place a drag on Australia's population growth,' she said 'Cost-of-living pressures, rising female workforce participation and broader uncertainty are likely driving this downward trend. 'Growth in deaths are outpacing births leading to the decline in natural increase.' The data shows NSW lost more than 28,000 people to net interstate migration, with 112,763 people leaving for elsewhere in the country. Queensland picked up more than 106,000 people from other states for a result of nearly 26,000 fresh faces. Nearly 40,000 Aussies moved to WA for a net increase of about 12,500 people. Australians continue to leave NSW, destined mostly for Queensland but also WA. NewsWire / Dan Peled Credit: News Corp Australia While Queensland and Victoria's total populations grew by 1.9 per cent, WA's grew 2.4 per cent. The population of every state and territory grew by at least 1.1 per cent, except Tasmania, which recorded a 0.3 per cent increase. 'Within Australia, people are continuing to leave NSW, and to a lesser extent Victoria and the smallest jurisdictions, and head into Queensland and WA,' Housing Industry Association economist Tom Devitt said. 'But even the jurisdictions losing residents interstate are absorbing enough overseas arrivals to see their populations expand.' State governments needed to do more to stimulate housing construction, he said. 'Foreign capital is highly liquid. State governments have forced institutional investors into building apartments in other countries,' Mr Devitt said. 'As a consequence, multi-unit construction volumes in Australia have halved, likely costing state governments tax revenue.'
News.com.au
20 hours ago
- News.com.au
Aussies exit NSW, WA hits 3 million population milestone
More people are fleeing NSW than any other state in Australia. Population data released by the Australian Bureau of Statistics this week shows 28,118 people left NSW in 2024. Western Australia tipped over three million people for the first time as the resource-rich state recorded the highest nationwide growth rate. At the end of 2024, 27.4 million people called Australia home, an increase of 445,900 on the previous year and representative of a 1.7 per cent increase. Commonwealth Bank economist Lucinda Jerogin said population growth had slowed quicker than anticipated on the back of the post-pandemic peak. 'A slowdown in natural increase continues to place a drag on Australia's population growth,' she said 'Cost-of-living pressures, rising female workforce participation and broader uncertainty are likely driving this downward trend. 'Growth in deaths are outpacing births leading to the decline in natural increase.' The data shows NSW lost more than 28,000 people to net interstate migration, with 112,763 people leaving for elsewhere in the country. Queensland picked up more than 106,000 people from other states for a result of nearly 26,000 fresh faces. Nearly 40,000 Aussies moved to WA for a net increase of about 12,500 people. While Queensland and Victoria's total populations grew by 1.9 per cent, WA's grew 2.4 per cent. The population of every state and territory grew by at least 1.1 per cent, except Tasmania, which recorded a 0.3 per cent increase. 'Within Australia, people are continuing to leave NSW, and to a lesser extent Victoria and the smallest jurisdictions, and head into Queensland and WA,' Housing Industry Association economist Tom Devitt said. 'But even the jurisdictions losing residents interstate are absorbing enough overseas arrivals to see their populations expand.' State governments needed to do more to stimulate housing construction, he said. 'Foreign capital is highly liquid. State governments have forced institutional investors into building apartments in other countries,' Mr Devitt said. 'As a consequence, multi-unit construction volumes in Australia have halved, likely costing state governments tax revenue.'
