Aussie unemployment fee hangs on at 3.5 per cent


Australia’s jobless fee got here in at 3.5 per cent in June, with 33,000 jobs added to the financial system.

The official labour power information confirmed the unemployment fee hanging on at 3.5 per cent for a second month, after the Could outcome was revised down.

“With employment growing by round 33,000 folks and the variety of unemployed lowering by 11,000 folks, the unemployment fee remained at 3.5 per cent,” Australian Bureau of Statistics head of labour statistics Bjorn Jarvis mentioned.

The participation fee fell 0.1 share factors to 66.8 per cent, down from final month’s document excessive.

“The rise in employment in June noticed the employment-to-population ratio stay at a document excessive 64.5 per cent, reflecting a good labour market wherein employment has lately elevated consistent with inhabitants development,” Mr Jarvis mentioned.

He mentioned there have been greater than one million extra folks employed in Australia than earlier than the pandemic, and a a lot increased share of the inhabitants was working.

Economists have been anticipating one other month of resilience within the jobs market, regardless of the extended curiosity rate-hiking cycle.

The unemployment fee is broadly anticipated to float up in coming months as increased rates of interest dent demand and reduce the necessity for employees.

Ahead-looking indicators level to a weaker jobs market, with vacancies down 10 per cent from their peak within the second quarter.

Whereas coming off their heights, job vacancies are nonetheless virtually double their pre-COVID ranges.

The Reserve Financial institution watches labour power information intently for indicators that its charges tightening is working to gradual financial exercise to permit inflation to simmer down.

The patron value index rose 7 per cent within the 12 months to March, nicely above the 2-3 per cent vary focused by the central financial institution.

The RBA will subsequent meet to resolve on rates of interest on August 1.

-with AAP



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