Australian Job Market Added 64600 Jobs In February
The recent data shows that the speed of growth in Australia's job market was higher than expected. This has put the unemployment figure down to a 50-year low.
Experts believe that a record number of people have returned to the workforce after a break or from switching roles.
Overall, 64600 new jobs were added to the Australian economy while the market was only expecting 48500 jobs. So it wouldn't be wrong to say that the Australian job market is very strong and isn't showing any signs of weakness.
Australian Unemployment Rate Is 5.8%
After stronger-than-expected results, the participation rate in the Australian job market has reached 66.6%. Similarly, the unemployment rate dropped by 0.3 points and reached 5.8%.
If we look back at the past, the unemployment rate has reached its lowest point in several decades. In fact, such levels were only last seen almost 50 years ago.
The recent employment surge in Australia comes at a time when the job market shrinks for two straight months. It appears that the reason behind that was people taking long breaks or changing jobs.
With people returning back to their jobs, the unemployment rate has taken a dip once again. According to the head of ABS, a lot of people were waiting to start a new job and now most of them are back to work starting in February.
However, there's also a downside to this sudden strength in Australia's job market... It will most likely put pressure on inflation and thus force the Reserve Bank of Australia (RBA) to introduce new rate hikes.
After the release of the employment rate, the Australian Dollar (AUD) increased by 0.4% since there's now an even greater chance of a rate hike.
For now, the only good thing about Australia's economy is a strong job market. Otherwise, there are several challenges such as high-interest rates and inflation.