Australia’s Jobless Rate Ticked Higher In June But Underlying Data Pointed To Labor Market Strength

Australia’s seasonally adjusted unemployment rate rose to 4.1% from 4.0% in June, Australian Bureau of Statistics data showed.

However, the details of the report mostly pointed to a strengthening labor market during the month:

• labor force participation rate The percentage improved from 66.8% to 66.9% as more workers looked for part-time and full-time jobs.
• Total employment Up 50.2K (10.0K expected, 39.5K prior)
• Full time employee Up 43.3K (previous 41.3K) while Part time jobs Up 6.8k (-1.9k previously)
• the Number of unemployed Increased by 10k (previously -9k)
• Monthly working hours In all jobs, it rose by 1.4%.

Link to the Australian Labour Force Survey June 2024

Bjorn Jarvis, Head of Labour Statistics at the Australian Bureau of Statistics, explained that:

“The employment-to-population ratio and the participation rate remain close to their 2023 highs. This, coupled with the continued high level of job openings, suggests that the labor market remains relatively tight, even though the unemployment rate has been above 4.0 percent since April.”

Jarvis also added that,In general, employment growth has kept pace with rapid population growth.“And that”In terms of trends, all indicators still point to a tight labor market, although less tight than it was in early 2023.“

Link to ABS press release issued in July

Market Reactions

Australian Dollar vs Major Currencies: 5 minutes

The Australian dollar, which had been trading in ranges against its peers except the Japanese yen, rose sharply on the report before forming higher ranges than its pre-jobs levels.

The stock remains in the green zone throughout the early hours of the Asian session.