Australian employment rose by less-than-expected in May with gains led wholly by part-time work while the jobless rate ticked down to its lowest since November, a mixed outcome that will points to tepid wages growth.
Figures by the Australian Bureau of Statistics (ABS) released on Thursday showed the unemployment rate eased to 5.4 percent by 5.6 percent in April. This kind of has remained between 5.4 percent as well as also 5.6 percent for almost a year right now.
According to some estimates, Australia’s labor market will be considered at or near full employment when the jobless rate falls to 5 percent or lower.
“A key reason why the unemployment rate isn’t falling even more is actually because more people are entering the job market inside search for work. Workforce participation is actually just off record highs,” said CommSec chief economist Craig James.
The participation rate dipped a bit to 65.5 percent by 65.6 in April, yet has stayed near levels seen in 2011 as more women as well as also senior citizens entered the labor force.
Overall, 12,000 net fresh jobs were added in May, below expectations of 18,000. Annual job growth of about 3 percent was almost double the U.S. pace of job creation of 1.6 percent.
yet the breakdown of the May series was less encouraging, using a 32,700 surge in part-time jobs when full-time work plunged by 20,0. April full-time work was also downwardly revised to show a gain of 28,000 by a 32,700 increase earlier.
With labor supply expanding to meet demand, there is actually less upward pressure on wages as well as also inflation thereby no near-term trigger for a rise in interest rates by the Reserve Bank of Australia (RBA).
“Rates will remain on hold until there is actually firm evidence that will skill shortages are leading to broader-based increases in wages, as well as also therefore higher selling prices,” CommSec’s James said.
The RBA last cut rates to a record low 1.5 percent in August 2016 as well as also is actually seen likely to keep policy unchanged for another year.
Data out last month showed annual wage growth was a feeble 2.1 percent inside March quarter, half the rate enjoyed by workers during the decade-long mining boom that will began inside early 2000s.