Australia: Labor market continues to create jobs in May
June 14, 2018
Seasonally-adjusted employment increased by 12,000 in May compared to the prior month, following the revised 18,300 jobs creation in April (previously reported: +22,600 jobs) but undershooting analysts’ expectations of somewhat stronger job growth. May’s reading was driven by more part-time workers, which more than offset a decline in the number of full-time workers.
The seasonally-adjusted unemployment rate ticked down to a seven-month low of 5.4% in May from 5.6% in April, while the trend participation rate inched down to 65.5%, yet close to record highs. Measures of underemployment and labor underutilization, despite declining in annual terms, remained fairly elevated. This is largely due to more women and senior citizens entering the labor force. Still moderate wage growth is therefore the result of a sturdy expansion in labor supply.
Australia Unemployment Rate Forecast
FocusEconomics panelists expect the unemployment rate to average 5.4% in 2018 and 5.2% in 2019.