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Employment rises by 2,000 but jobless rate jumps
Employment rises by 2,000 but jobless rate jumps

West Australian

timean hour ago

  • Business
  • West Australian

Employment rises by 2,000 but jobless rate jumps

Australia's unemployment rate has shocked expectations and jumped, with less Aussies in the workforce. Fresh figures released by the ABS shows the unemployment rate rose to 4.3 per cent last month, beating expectations of 4.1 per cent. Employment as a whole rose by 2000 people this month, following a fall of 1000 in May, and is up 2 per cent year on year. The rise in unemployment was determined as 33,600 workers became unemployed in the month of June. This was against expectations of 20,000 jobs to be added in the month and the unemployment rate to hold. The underemployment rate also increased to 6 per cent, as 40,200 part time roles were created and 38,200 full time roles were lost from the job market. The employment-to-population ratio remained at 64.2 per cent, and the participation rate, being people who are actively working, rose to 67.1 per cent. Hours worked fell 0.9 per cent in June, following a rise of 1.4 per cent in May. ABS head of labour statistics Sean Crick said: 'This month we saw a decrease in full time hours worked, down 1.3 per cent, associated with a 0.4 per cent fall in full time employees.' Prior to Thursday's official announcement, experts had tipped the unemployment rate to remain at 4.1 per cent, although they did predict a tightening of the jobs market. The Reserve Bank of Australia will be watching the jobless rate ahead of its next meeting, having the dual mandate of employment and controlling inflation. 'I think the focus for the RBA will be ensuring the labour market remains healthy going forward,' NAB's head of Australian economics Gareth Spence said. 'The timing of cuts is not super important. 'It's more about where do they end up.' In a move that shocked markets and disappointed homeowners, the RBA kept the official cash rate at 3.85 per cent during its July 8 meeting. Most economists had already pencilled in a rate cut as well as another cut in August.

Job figures the fresh piece of Reserve Bank rate puzzle
Job figures the fresh piece of Reserve Bank rate puzzle

The Advertiser

time10 hours ago

  • Business
  • The Advertiser

Job figures the fresh piece of Reserve Bank rate puzzle

The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators." The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators." The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators." The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators."

Job figures the fresh piece of Reserve Bank rate puzzle
Job figures the fresh piece of Reserve Bank rate puzzle

Yahoo

time10 hours ago

  • Business
  • Yahoo

Job figures the fresh piece of Reserve Bank rate puzzle

The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators."

Job figures the fresh piece of Reserve Bank rate puzzle
Job figures the fresh piece of Reserve Bank rate puzzle

Perth Now

time10 hours ago

  • Business
  • Perth Now

Job figures the fresh piece of Reserve Bank rate puzzle

The Reserve Bank will have a keen eye on fresh data on Australia's jobs market as its next decision on interest rates draws closer. Labour force figures for June will be released on Thursday by the Australian Bureau of Statistics and are tipped to show the unemployment rate remaining at 4.1 per cent for the month. The predictions come despite a tightening of the jobs market. The Reserve Bank would continue to closely monitor the jobless rate before its next meeting in August, NAB's head of Australian economics Gareth Spence said. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he said. "The timing of cuts is not super important. "It's more about where do they end up." In a move that shocked analysts and disappointed mortgage holders, the RBA kept the cash rate steady at 3.85 per cent at its last board meeting on July 8. Most economists had pencilled in a 25 basis point cut on the back of slowing inflation growth. The Commonwealth Bank has forecast 20,000 jobs will have been added to the economy during June. The participation rate is also expected to stay at the previous level of 67 per cent. The unemployment rate has stayed at 4.1 per cent for the past three consecutive monthly readings. The most recent figures in May came despite employment falling by 2000 people, according to the bureau's last figures. Mr Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. The Reserve Bank said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers," the bank said. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators."

All signs point to jobs market holding firm in new data
All signs point to jobs market holding firm in new data

The Advertiser

time4 days ago

  • Business
  • The Advertiser

All signs point to jobs market holding firm in new data

Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3. Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3. Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3. Despite expectations unemployment will rise over the course of 2025, forward indicators point to more jobs growth ahead of the Australian Bureau of Statistics' labour force release on Thursday. Economists predict the figures to show the unemployment rate held at a relatively low 4.1 per cent in June, while about 20,000 jobs are tipped to have been added to the economy. NAB's head of Australian economics, Gareth Spence, still expects the jobless rate to rise to 4.4 per cent by year end but signs point to a labour market still in rude health. The bank's monthly business survey, released last week, showed business conditions spiked nine index points while ANZ-Indeed job ads climbed to a 12-month high. Despite the Reserve Bank surprising economists and traders by leaving rates on hold on Tuesday, Mr Spence does not expect a major negative impact on the economy, given three more cuts are still priced in by early next year. "I think the focus for the RBA will be ensuring the labour market remains healthy going forward," he told AAP. "The timing of cuts is not super important. It's more about where do they end up." Household spending has recovered slower than expected in the first half of 2025, as global uncertainty weighed on consumers and set back the handover from public to private demand as the main driver of economic growth. Further cuts towards what the central bank sees as a more neutral cash rate will be needed to support consumption, Mr Spence said. Another insight into household confidence levels will be revealed in the Westpac-Melbourne Institute consumer sentiment report on Tuesday. On Wednesday, the ABS will release building activity data for the March quarter. The number of dwellings that began construction in the last three months of the year fell 4.4 per cent to just under 42,000, well below the 60,000 a quarter needed to reach the national housing accord target of 1.2 million new homes over five years. After trending upwards through the second half of 2024, building approvals have flatlined since January. Wall Street investors meanwhile appear to have gone cold on US trade policy, with Meta Platforms weighing on the S&P 500 after Donald Trump intensified his tariff offensive against Canada. The president has ramped up his tariff assault, saying the US will impose a 35 per cent tariff on Canadian imports next month and plans are afoot to impose blanket tariffs of 15 per cent or 20 per cent on most other trading partners. The S&P 500 declined 0.33 per cent to end the session at 6,259.75 points, the Nasdaq was down 0.22 per cent to 20,585.53 points and the Dow Jones Industrial Average fell 0.63 per cent to 44,371.51 points. Australian share futures dropped 13 points, or 0.15 per cent, to 6,847. The benchmark S&P/ASX200 index on Friday finished down 9.1 points, or 0.11 per cent, to 8,580.1, while the broader All Ordinaries dipped 6.4 points, or 0.07 per cent, to 8,820.3.

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