The rate at which people participate in the labour force is also at a record high. The rise in participation since the onset of the pandemic is mostly attributable to women entering (or re-entering) the labour force in large numbers. This has been underpinned by strong labour market conditions, more flexibility in working arrangements and a continuation of long-run trends.
[6] The unemployment rate has fallen sharply and is currently a little over 3½ per cent. Not only did the pace and extent of decline in unemployment surprise forecasters, the improvement since late 2019 has also been large compared with other countries (Graph 4).