Economic Wrap: WA hits record employment and migrant levels

WA’s labour force expands

Labour Force data released last week shows WA’s jobs market continues to grow. The number of people employed in the State rose by 14,700 over August, bringing the number of people in work to the largest size on record.

Despite this increase, WA’s unemployment rate ticked up to 3.8% (from 3.5% in July), as the size of the labour force also expanded, pushing up the number of unemployed people by 5,500. This is now slightly above the national unemployment rate of 3.7%, which remains unchanged over the month.

Overseas migrants flock to WA

New population data is also out, showing the number of people calling WA home has exploded this year.

WA’s population rose by 26,000 over the March 2023 quarter, the greatest increase since records began in 1981.

This was largely driven by the huge rise in the number of overseas migrants flocking to the State, with just over 18,000 people during the quarter – again a record number.

At the same time, the number of people packing their bags to move west from the eastern states remains strong, with a further 3,175 people migrating from interstate over the quarter.

This increase means WA’s population grew a rapid 2.8% over the year to March 2023, faster than any other state.

What’s driving US inflation?

US inflation dominated overseas data releases last week, with headline inflation rising to 3.7% year-on-year to August, up from 3.2% in July and above market expectations.

This is the second consecutive month of headline inflation increase, driven by a lift in oil prices as OPEC maintains a reduced level of oil supply to the global market in fear of a slowdown in economic activity.

The risk that oil prices rise further and place upward pressure on inflation will be considered by the US Federal Reserve when they meet next week to discuss the need for further interest rate hikes.

Core inflation, excluding energy and food prices, fell to 4.3% (from 4.7% the month prior), the lowest since September 2021 and in line with expectations.

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