January saw the Australian unemployment rate plummet from 4.6% to 4.2%, which at the time marked the lowest point since the GFC. This exceeded expectations and was despite COVID-19 impacts.

Yet, while there has been a surge in Omicron cases of COVID-19, the unemployment rate has continued to drop to new lows that have not been seen for 13 years, culminating in the announcement that February’s unemployment rate is 4.0%. The last time unemployment was lower was during the mining boom prior to the GFC.

A key factor has been the end of Delta variant lockdowns in New South Wales and Victoria in late 2021, with increased confidence and mobility from increasingly widespread vaccinations.

The Australian dollar has continued to rise and now stands at $US 0.73.

Nevertheless, rising Omicron cases have placed increasing pressure on critical supply chains, which is further impeded by growing fuel prices.

However, financial experts agree the economic impact of Omicron may be significant, but ought to be short-lived as the country goes back to business-as-usual.

Pictured below is the Australian unemployment rate over 25 years with data from the Australian Bureau of Statistics and visualised by Trading Economics.

source: tradingeconomics.com