Unemployment rate meets forecasts and remains at 5.2%

Unemployment rate meets forecasts and remains at 5.2%
Unemployment rate meets forecasts and remains at 5.2%

The unemployment rate has remained unchanged at 5.2% according to the recent figures from the ABS.

The figure is in line with market expectations.

The RBA are trying to drive the unemployment rate down to 4.5%, however the RBA believe it needs to below 5% in order for the economy to see adequate wage growth.

The number of unemployed persons edged higher, from 697,000 to 701,700.

The unemployment rate crept up slightly from 5.19% in May to 5.24% in June. It is now at its highest level in 10 months.

The unemployment rate dropped in Perth, however saw a rise in Victoria, Queensland, South Australia and Tasmania.

To see the state by state breakdown, click here.

Unemployment rate meets forecasts and remains at 5.2%

There were forecasts from economists that there would be around another 9,000 jobs added, following on from the increase of 45,300 jobs in May. 

There were only 500 jobs added.

Full time jobs rose by 21,100, but part-time jobs fell by 20,600.

The trend participation rate increased to 66 percent over the month.

ABS Chief Economist Bruce Hockman said, "Australia's participation rate was at 66 per cent in June 2019, which means nearly two of every three people are currently participating in the labour market. "

"The participation rate for 15 to 64 year olds was even higher and closer to four out of every five people, " Hockman said.

CommSec economist Ryan Felsman said the Reserve Bank is expected to hold for now.

"The Reserve Bank is expected to ‘sit pat’ for now, assessing incoming economic data over the coming months before deciding the next move for the cash rate," Felsman said.

"But the Board stands ready to act, “if needed” to support the economy and job market.

"The end-of-month June quarter inflation data release is the next test."

 


 

Tags: 
Unemployment Labour Market

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