Employment falls 2500 in May, undershooting forecasts
Cecile Lefort
The number: Australian employment fell 2500 in May, following a gain of 89,000 the previous month. The unemployment rate held at 4.1 per cent, from 4.1 per cent in April. Consensus was for 22,500 jobs to be created and the jobless rate to stay at 4.1 per cent. Why it matters: The job market, a key driver of inflation, has been remarkably robust, and another strong report could challenge market expectations of a rate cut next month. The Reserve Bank has cut interest rates twice since February as inflation has finally returned to target, and to safeguard against the prospect of an economic slowdown. What has changed: Australia’s economy barely grew in the March quarter as government spending, the engine of activity last year, sputtered to a standstill and households limited expenditure. What next: Monthly inflation for May will be released on June 25.
