Building activity slows, jobs hold, and business grows

If there’s one thing Australians know, it’s that our economy never sits still.

Whether it’s the ups and downs of home building, shifts in the jobs market, or how businesses are faring – it all paints a fascinating picture of where we’re headed. So, let’s dive into the latest numbers from the ABS and break it all down.

Housing: Slowing Down, But Not Stopping

The housing sector has had a bit of a dip. In the December quarter, total dwelling commencements fell 4.4%, driven by fewer private sector houses starting construction. That’s a 6.1% drop, reversing the previous quarter’s gains. Other residential commencements also fell 5.6%.

However, there’s still positive news – completions were strong, with 45,167 dwellings finished, and the value of new residential construction actually ticking up by 0.6% to $20.3 billion.

So, while fewer homes are breaking ground, many projects are still being wrapped up.

Jobs: A Tiny Bump in Unemployment

Moving to the jobs market, unemployment nudged up slightly in March to 4.1%, according to the ABS.

This is still within the stable range we’ve seen over the past 16 months, meaning there’s no need to panic – it’s more of a minor shift than a major movement. What’s encouraging is that employment has grown by 308,000 people over the past year, outpacing the long-term average.

But there’s an interesting twist – monthly hours worked dipped again. Extreme weather events, including ex-Tropical Cyclone Alfred, played a role here, with more people working reduced hours than usual.

Underemployment held steady at 5.9%, showing that while people are working, some may still be chasing more hours.

Business: Mixed, But Mostly Positive

Finally, business turnover showed steady growth in February, rising 0.7% in trend terms, according to the ABS.

The manufacturing sector led the way with a 4.6% surge, thanks to booming metal product manufacturing. However, not all industries fared as well – mining dropped 2.5%, while wholesale trade fell 2.0%.

Overall, most industries are seeing positive annual growth, with manufacturing and telecommunications shining. Some, like mining and arts/recreation, are seeing declines, but for now, momentum in business turnover remains upward.