Unemployment to hold steady as pay packets swell
Labour force figures for May, to be released on Thursday, are tipped to show the unemployment rate hold steady at 4.1 per cent.
Economists predict about 20,000 new jobs will be added to the economy for the month, following a bumper increase of 89,000 in April.
With the labour force participation rate also set to remain unchanged at 67.1 per cent, the Australian Bureau of Statistics figures are poised to show a tightening of the jobs market.
Listed salaries have increased by 3.6 per cent for the year to May, according to a report by online job site Seek.
The site's advertised salary index showed growth in pay rates for new positions have remained steady over the past year.
But monthly growth in May was just 0.2 per cent, the smallest one-month increase since October.
Seek senior economist Blair Chapman said the increase in wages advertised was a welcome rise.
"The growth in average advertised salaries is currently outpacing living costs, which is good news for those switching employers as they are likely gaining a real wage increase," he said.
"This means they can purchase more goods and services or save some of their additional earnings."
Treasurer Jim Chalmers said reducing levels of unemployment had come about while inflation had also been brought down.
This is why economic reform matters. We've made a lot of progress together in our first term making our economy more productive, dynamic and resilient to help deliver a better standard of living for all Australians.We know there's more to do and that's why the reform… pic.twitter.com/Rg5OKEvspk
— Jim Chalmers MP (@JEChalmers) June 18, 2025
"No major advanced economy has combined unemployment in the low 4s with inflation under 2.5 and three years of continuous growth," he said in an address at the National Press Club on Wednesday.
"We know this welcome progress in the national aggregate data doesn't always translate into how people are feeling and faring in local communities. But real wages are growing again."
The treasurer has flagged potential tax reform during his second term in the role, which will be examined at a productivity summit to be held in Canberra in August.
"This is all about testing the country's reform appetite," Dr Chalmers said.
"I am prepared to do my bit, the government is prepared to do its bit, and what we'll find out in the course of the next few months is whether everyone is prepared to do their bit as well."
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