- The Australian Jobs Report has been released and has shown disappointments throughout a which is hurting the Australian dollar on expectations of an RBA rate cut.
- With the RBA around the corner, this was a highly anticipated report, considering the RBA Board saying last week that it “will be paying close attention to developments in the labour market at its upcoming meetings.”
The Australian Jobs Report has been released with big shoes to fill following a solid March report where total employment was up 25.7k, taking annual growth to 2.4%. Expectations were for a more modest 14.0k employment change. The unemplyment rate was expected at 5.1% vs 5.0% prior, moving in the opposite direction to where the RBA requires, stroking the prospects of a rate cut, with next month’s being a live meeting.
The data arrived as follows:
Unemployment rate: 5.2% vs expected 5.0%, prior 5.0%. (Not at all welcome)
Employment change: +28.4k vs +14.0k expected.
Full-time employment: -6.3k vs 48.3k prior.
Part-time employment: +34.7k vs -22.6k. (Not welcome)
Participation rate: 65.8% vs 65.7% and 65.7% prior.
About the Unemployment Rate
The Unemployment Rate release by the Australian Bureau of Statistics is the number of unemployed workers divided by the total civilian labor force. If the rate hikes, indicates a lack of expansion within the Australian labor market. As a result, a rise leads to weaken the Australian economy. A decrease of the figure is seen as positive (or bullish) for the AUD, while an increase is seen as negative (or bearish).