Employment jumps 50,200 in June, jobless rate 4.1 per cent....

Employment jumps 50,200 in June, jobless rate 4.1 per cent.

Sarah Jones


The number: Australian employment increased 50,200 in June, following a 39,700 increase the previous month. The unemployment rose to 4.1 per cent from 4 per cent. Consensus was for 20,000 jobs created and unemployment ticking up to 4.1 per cent.

What was said: “The employment-to-population ratio and participation rate both continue to be near their 2023 highs,” said Bjorn Jarvis, ABS head of labour statistics.

Why it matters: The labour market is considered key to help bring inflation back to the Reserve Bank’s inflation target. The job report is notoriously volatile due to seasonal adjustments.

What has changed: The economy barely grew in the second quarter, although there were signs of strength in consumer spending after some upward revisions. Monthly consumer inflation data is also proving hotter-than-expected keeping the risk of a rate increase by the Reserve Bank on the table.

What next: The second quarter inflation data is due at the end of the month, followed by the Reserve Bank’s next board meeting on August 5-6.
Bonds traders dial rate hike bets after employment data

Joshua Peach

Markets have reacted modestly following news Australia economy had added nearly twice the number of jobs as expected last month.

Australian employment increased 50,200 in June, more than the 20,000 jobs expected by most economist.

Following the news, the sharemarket has dipped modestly to be 0.3 per cent lower, from 0.1 per cent lower before the data.

Bond traders have subsequently pared the odds of a rate cut from the Reserve Bank of Australia before the end of the year from 14 per cent to 8 per cent and increased the odds of a hike from 14 per cent to 20 per cent.