The unemployment rate in Australia plunged to a 48-year low last month as nearly 90,000 jobs were added in June.
Figures released from the Australian Bureau of Statistics on Thursday revealed that hiring outstripped all expectations. Net employment had soared 88,400 in June. This, after registering a jump of 60,600 in May.
June’s figures easily surpassed market expectations for an increase of 30,000 employed in June. For the year so far, there has been an impressive 438,000 jobs added.
The jobless rate in Australia also fell more than analysts had predicted. The Australian unemployment rate fell from 3.9% to 3.5%. This brings the unemployment rate down to its lowest level since August 1974. Analysts had forecast a slight decline to 3.8%.
The big fall in unemployment comes as the participation rate reached a record-ever high. The number of people actively looking for work in Australia jumped to 66.8%.
Tight Labour Market
The number of unemployed people in Australia now stands at 494,000. This figure is now almost matching the number of vacancies which stands at 480,000.
Bjorn Jarvis, head of labour statistics at the ABS said of the latest Australian unemployment data:
“These flows reflect an increasingly tight labour market, with high demand for engaging and retaining workers, as well as ongoing labour shortages.”
“This equates to around one unemployed person per vacant job, compared with three times as many people before the start of the pandemic.”
Bjorn Jarvis
Andrew Boak, an economist at Goldman Sachs (NYSE:GS), added:
“With the unemployment rate at a 48-year low, surveyed business conditions well above long-run averages, and COVID-related mobility restrictions fully eased, the economy is bumping-up against capacity constraints in many areas.”
“The Australian economy remains on a path to much higher inflation and interest rates, having entered the tightening cycle with strong momentum.”
Andrew Boak
