Australia’s unemployment rate has exceeded expectations as the nation’s economic growth is cooling off steadily, suggesting that the RBA’s plan to keep the interest rate steady is working.
The latest data from the Australian Bureau of Statistics (ABS) reveals that the unemployment rate increased by 0.2% to 3.7% in July.
Although the financial markets had mostly priced in a modest increase to 3.6%, the results exceeded their expectations.
The number of Australians classified as unemployed surged by 42,000, while the number of employed people reduced by 15,000.
ABS head of labor statistics Bjorn Jarvis revealed that the job rate was still below pre-pandemic levels.
“The fall in employment follows an average monthly increase of around 42,000 people during the first half of this year. Employment is still around 387,000 people higher than last July,” he continued further.
“July includes the school holidays, and we continue to see some changes around when people take their leave and start or leave a job. It’s important to consider this when looking at month-to-month changes compared with the usual seasonal pattern.
“The only other fall in employment in 2023 was in April, which also included school holidays.
“While unemployment increased by 36,000 people in July, to 541,000, it was still around 172,000 lower than before the pandemic.”
The current data suggests that the RBA should continue holding the interest rate steady, which could bring down the increasing inflation as the rate of unemployment increases.
- Published By Team Australia News