Australian Jobless Rate Jumps

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Australian Jobless Rate Jumps

Australian Jobless Rate Jumps To 4.1% During June

Aussie jobs data is released for the month of June, revealing an increase in the unemployment rate. According to the ABS, the unemployment rate in Australia has increased to 4.1%, against the forecast of 4.0%.

Additionally, the employment change has also moved from a reading of 39.7 previous month to around 50200 in June. This number was a lot higher than the forecast of 20,000.

Participation Rate Jumped To 66.9%

The overall participation rate also increased during June to 66.9% against the earlier reading of 66.8%. Meanwhile, a change from 41.7K to around 43.3K was seen in the full-time employment. As for part-time employment, it increased from -2.1K in May to around 6.8K during June.

According to experts, the number of unemployed people increased by 10,000 while employment increased by 50,000. This lead to a slight increase in the unemployment rate along with a steady rise in the participation rate.

During June, the unemployment increased to 10,000, while it was around 9000 in May 2024. If we compare these numbers from the pre-COVID era, it is still lower than 14.2%.

If we compare June's jobless rate with the same period last year, the unemployment increased by 0.5% around 1.1% lower than the 2020.

Following the release of the Australian job data, modest gains were registered in the AUD/USD pair. As of now, AUD/USD was trading near the 0.6733 handle with a +0.06% gain for the day.

Overall, the market players have received the Australian jobs report in a positive manner, as evident from the AUD appreciation. However, it is also important to note that the recent trend in the AUD/USD has more to do with the US Dollar weakness across the board rather than AUD strength from the recent jobs report.

The recent data from Australia will also make it difficult for the RBA to go ahead with a rate hike as the unemployment rate is slowly inching higher.

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