Australia Jobless Rate Falls To 4.0%
(RTTNews) - Australia's unemployment rate dropped in May and employment increased notably, suggesting that the labor market is relatively tight, official data revealed on Thursday.
The jobless rate fell to 4.0 percent in May, as expected, from 4.1 percent in April, the Australian Bureau of Statistics said.
The number of people out of work decreased by 9,200 in May, reversing an increase of 33,000 in April.
At the same time, employment increased 39,700 from the previous month, much stronger than the expected growth of 30,000.
The participation rate held steady at 66.8 percent in May, while the rate was seen at 66.7 percent.
"In April we saw more unemployed people than usual waiting to start work," ABS head of labour statistics Bjorn Jarvis said. "Some of the fall in unemployment and rise in employment in May reflects these people starting or returning to their jobs," said Jarvis.
The employment-to-population ratio and participation rate continued to be much higher than their pre-pandemic levels, Jarvis noted.
"Together with elevated levels of job vacancies, this suggests the labour market remains relatively tight, though less than in late 2022 and early 2023," Jarvis added.
Further, data showed that full-time employment increased by 41,700, while part-time employment decreased 2,100. Capital Economics' economist Abhijit Surya said the unemployment rate fell anew in May but leading indicators continued to point to a marked increase in the months ahead.
The economist said data indicates that the Reserve Bank will remain in its "wait and see" mode for the time being.
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