Australia: Unemployment drops further in June
Seasonally-adjusted employment rose by 29,100 in June, following 115,200 jobs added in May. June’s result was driven by an increase in full-time employment more than offsetting a decline in part-time employment.
Meanwhile, the seasonally-adjusted unemployment rate fell to 4.9% in June, from May’s 5.1%, logging the lowest reading since December 2010 and markedly down from the 7.5% peak reached in July 2020. However, the seasonally-adjusted underemployment rate rose from 7.4% in May to 7.9%. Meanwhile, the participation rate was stable at May’s 66.2%.
Commenting on the release, Robert Carnell, Asia-Pacific regional head of research at ING, stated:
“In the past, a 4.9% unemployment rate might have been considered close to full employment. But this no longer holds true and the RBA may only be comfortable that it has got unemployment low enough once wages show clear signs of rising.”