The overall trend of a falling unemployment rate has remained intact, even as recent employment reports indicated employment creation has been barely keeping up with the flow of new workforce entrants. The participation rate is at an all-time high and the underemployment rate may be beginning to trend lower. However, leading indicators have been soft and economists expect another rate cut from the RBA.
The latest Labour force figures have now been released and they indicate the number of people employed in Australia has grown for eleven consecutive months after precious months’ figures were revised. The report shows the total number of people employed in Australia increased by just 500 and the unemployment rate has remained unchanged at 5.2%.
After the report was released, Chris Read, Morgan Stanley Australia’s Equity Strategist said, “Employment growth faded in June with no jobs added. Unemployment was flat at 5.2%, however, the underemployment rate improved sharply, supporting an RBA pause for August. Risks still remain skewed to the downside and we expect some further jobs softness from here.