Unemployment rate edges up to 5.8 per cent
Australia’s unemployment rate has lifted marginally from 5.7 per cent to 5.8 per cent, showing a stagnant job market with little growth.
That figure was in line with economist forecasts.
However, the Australian Bureau of Statistics data showing that employers added 7900 workers in June was short of the 10,000 job gain forecast by economists.
Full-time jobs rose a solid 38,000, while part-time jobs fell 31,000.
Part-time employment increased by only 7600 persons, its weakest monthly growth since August 2014.
For economists, the figures show that not enough jobs are being created to take unemployment below 5 per cent.
Economist Stephen Koukoulas said it was another mediocre result.
“There is no upside traction in the economy,’’ he said. “We haven’t had really good numbers for quite a while now.”
He said the unemployment might put more pressure on the Reserve Bank of Australia to cut interest rates again next month.
“It’s not a catastrophic number but it might be enough for the RBA to do something next month,’’ he said.
‘The RBA team of economists said the labour market figures along with a low inflation number at the end of this month might prompt a rate cut. But then, it was no sure bet.
“We continue to think that persistently low inflation and a softer labour market will prompt the RBA to cut rates again in August by 25 basis points, although the decision may be a closer call than we previously thought given business confidence has held up so far in the face of heightened uncertainty,’’ the ANZ said.
by Leon Gettler, July 15th 2016
