Business
Australia’s Unemployment Rate Falls to 4.4% in May
The jobless rate eased to 4.4% in May as employment increased by 40,000 jobs, although hours worked declined and underlying labour market conditions remained mixed.
Australian jobs jumped to record high in the final month of last year, participation remains static at 66.7% in a story of moderating growth. Workers are still flocking to jobs.
The latest figures from the Australian Bureau of Statistics, released on Thursday, were largely in line with a rate of 4.5% recorded last month but defied analysts’ predictions for a smaller number of additional positions being created.
All of the 40,600 jobs lost in May as measured by the Bureau of Labour Statistics during the prior month was made up.
Australian employment increased to its highest ever level last month with participation rate unchanged at 66.7% on the back of moderating growth with workers continuing their interest in jobs.
Labour market remains tight despite softer indicators
Most of the new employment was among part-time positions. More moderate signals from other labour market metrics indicated hiring intentions might be scaling back. Hours worked in total fell by 1.1% in May, and the under-employment rate increased to 5.9%.
The data comes amid the release of another ABS report showing the number of job vacancies fell by 2.1% over the three months to May to 329,500.
The number of vacancies compared to the previous year also decreased by 2.1%.
However, the levels of vacancies remain above pre-pandemic rates. Sean Crick, ABS head of labour statistics, said employment gains this month were partially driven by fewer people waiting for a new job to start.
The data will likely shape the Reserve Bank of Australia’s monetary policy views, particularly the Reserve Bank of Australia Outlook.
The labor market still looks hotter than many economists had predicted earlier this year. Australia’s unemployment rate is now also beneath the RBA’s prediction of 4.7% employment by mid-2028, suggesting more moderate conditions are available.
Source: Capital Brief
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