Australia: Despite a surge in job creation, unemployment rate remains unchanged in July
Seasonally-adjusted employment rose by 41,100 in July, contrasting a revised 2,300 jobs slashed in June (previously reported: +500). July’s result came in well above the expectations of most market analysts and was largely driven by a jump in full-time employment, while gains in part-time employment were more moderate.
Seasonally-adjusted unemployment remained stable at 5.2% for the fourth consecutive month in July suggesting that a jump in employment was largely offset by increasing supply of labor. As such, the seasonally-adjusted participation rate ticked up to a fresh all-time high of 66.1%. Meanwhile, the seasonally-adjusted underemployment rate rose to 8.4% in July, from 8.2% in June.
July’s labor market data confirms expectations that the Reserve Bank of Australia will likely resume its monetary policy easing cycle at its next meeting in September, as labor market slack continues to put downward pressure on wages and inflation.