The overall trend of a falling unemployment rate remains intact as the Australian economy keeps on producing new jobs. The participation rate has also been rising, typically a sign of confidence among prospective employees and contractors. However, economists expect the rate of job creation to slow as leading indicators have not been entirely encouraging recently.
April’s Labour force figures have now been released and they indicate the number of people employed in Australia has grown for a ninth consecutive month. The report shows the total number of people employed in Australia increased by a net 28,400 even though the unemployment rate ticked up to 5.2%.
ANZ senior economist Catherine Birch said, “From the RBA’s perspective, unemployment and underemployment are heading in the wrong direction. The increased slack in the labour market will not help progress towards its inflation target.” However, she noted an “increased labour supply drove the rise in the unemployment rate, with the participation rate at its highest result on record.”