RBA rate cut at risk on more women finding full-time jobs
Fresh figures released by the Australian Bureau of Statistics show the unemployment rate fell to 4.2 per cent in July, from 4.3 per cent.
The fall in unemployment came as 24,500 people found work over the last month.
This was largely in line with expectations of 35,000 new roles being created.
Growth in employment was driven by full-time employment, which was up by 60,000 people, with a 36,000 person fall in part-time employment partly offsetting this rise.
The number of female full-time workers grew by 40,000 while male full-time workers rose by 20,000.
'Early stages of a downturn'
On Tuesday the RBA maintained its forecast for the full unemployment rate to sit around 4.3 per cent by December this year.
While good news for workers, BDO Economics partner Anders Magnusson said the unemployment rate dampens hope of further interest rate relief.
'Today's labour force figures show the unemployment rate at 4.2 per cent, slightly below the Reserve Bank's forecast of 4.3 per cent, he said.
'While this still points to a gradual loosening in conditions, it suggests the labour market is holding up a little better than the RBA had anticipated.'
Oxford economics head of macroeconomic forecasting Sean Langcake said the strong growth in full-time wages also helped boost the hours worked and contributed to a tick down in the underemployment rate.
'The labour market has been in a tight position for a protracted period, defying a broader slowdown in economic growth, he said.
'But the labour market now appears to be in the early stages of a downturn. Today's data are reassuring in that they suggest conditions are not deteriorating quickly.
'Nevertheless, weak economic momentum and global uncertainty will be strong headwinds for the labour market to overcome through the rest of the year.'
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