Join today and you can easily save your favourite articles, join in the conversation and comment, plus select which news your want direct to your inbox.
Join today and you can easily save your favourite articles, join in the conversation and comment, plus select which news your want direct to your inbox.
The unemployment rate unexpectedly fell to its lowest level in four months in April, but the number of people with full-time work declined - a mixed report that augurs poorly for a much-needed revival in wage growth and inflation.
The unemployment rate slipped to 5.7 per cent, the Australian Bureau of Statistics said on Thursday, compared with analysts' expectations for a steady 5.9 per cent.
Financial markets remain beholden to political risk
In the absence of any tier-one economic data, it really will be sentiment towards US politics that dominates investors' mindsets, although the OPEC meeting is also a consideration. (This video was produced in commercial partnership between Fairfax Media and IG Markets).
Nick Bishop was terminally ill, but he had to fight for CommInsure life insurance. Now, he says there needs to be a royal commission into the way insurance companies handle their vulnerable clients.
The unemployment rate fell to 5.7 per cent in April due to an increase of people in part-time work.
The 37,400-strong jump in jobs boosted the Australian dollar, which climbed to US74.51¢ around midday, compared with US74.17¢ before the report.
However, all of the increase in job numbers came from part-time employment, which soared 49,000 while full-time employment fell by 11,600, the data showed.
The jobless rate fell to 5.7 per cent in April, beating expectations of a flat rate of 5.9 per cent. Photo: Supplied
The Reserve Bank of Australia (RBA) has repeatedly expressed worries about a "somewhat mixed" labour market. The minutes of its May policy meeting showed that board members had an in-depth discussion about the employment, including the increasing share of part-time work.
The trend towards more part-time jobs is one reason wages are growing at a record low rate, undermining domestic consumption.
Advertisement
The RBA is constrained by the fear of spurring a debt binge in the red-hot property market if it lowered interest rates from the current record-low 1.5 per cent. It has left rates unchanged since it last eased in August 2016.
The participation rate, which refers to the number of people either employed or actively looking for work, was flat at 64.8 per cent.
Full-time employment fell by 11,600 jobs, while the number of part-time jobs was up 49,000. Photo: Erin Jonasson
CommSec chief economist Craig James said the March jobs data had appeared to be an outlier but "now clearly it is no fluke".
"In fact, jobs have lifted for the past seven months, averaging gains of around 25,000 a month," he said.
"Unemployment is falling and hours worked are up 1.3 per cent over the year – the best annual growth in 11 months. The forward indicators like job ads and business surveys had been pointing to a stronger job market and indeed it does now appear to be reality."
More to come
Reuters, AAP and Bloomberg
Save articles for later.
Subscribe for unlimited access to news. Login to save articles.
Return to the homepage by clicking on the site logo.