Job losses take pressure off RBA and interest rates
Following Wednesday’s weaker-than-expected wage growth data, the Australian Bureau of Statistics (ABS) released its July labour force survey on Thursday, which reported rising unemployment. The nation’s unemployment rate rose 0.1% to 4.5% after 15,800 jobs were lost. However, full-time employment rose by 16,300, more than offset by a 32,200 decrease in part-time jobs. The number The post Job…
The Australian Bureau of Statistics released its July labour force survey on Thursday, revealing a rise in unemployment. The nation's jobless rate increased by 0.1% to 4.5% following the loss of 15,800 jobs. However, full-time employment rose by 16,300, which more than compensated for the 32,200 decline in part-time positions. The total hours worked also decreased by 0.6% in July, while the labour force participation rate fell by 0.2%.
Despite the rise in unemployment to 4.5%, slightly below its post-pandemic peak from April, the Reserve Bank anticipates this trend to continue. Coupled with the weaker-than-expected wage growth data, the labour market is considered somewhat "soft". Consequently, the RBA is expected to maintain interest rates at their current level, with no immediate plans to raise or lower them.
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