Latest news with #Australian Bureau of Statistics
Yahoo
7 days ago
- Business
- Yahoo
Australian Unemployment Unexpectedly Jumps to Four-Year High
(Bloomberg) -- Australian unemployment unexpectedly climbed to a four-year high in June as hiring almost stalled, suggesting a loosening of the labor market and bolstering the case for the Reserve Bank to reduce interest rates next month. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The currency declined by more than a half percent as the jobless rate increased to 4.3%, the highest level since November 2021 and exceeding forecasts for an unchanged 4.1%, data from the Australian Bureau of Statistics showed Thursday. Employment rose by 2,000 driven entirely by part-time roles, against economists' expectations of a 20,000 gain. The yield on policy-sensitive three-year government bonds fell almost 10 basis points while stocks advanced. Money market bets firmed to fully price a cut in August and another after that, with a better than 50% chance of a third. The data is crucial for RBA policymakers as the resilience of the labor market, and worries about it rekindling price pressures, have been key reasons why they've shown patience in the current easing cycle. The central bank has cut twice since the start of the year — shocking the market last week with a decision to hold — and today's weak report, following a subdued reading in May, could suggest a turn in fortunes. 'The consecutive poor jobs prints and the jump in unemployment rate to 4.3% is likely to spook the RBA,' said Alex Loo, a macro strategist at Toronto-Dominion Bank in Singapore. 'Investors are likely to read that the RBA may opt for consecutive cuts in August and September now.' The central bank's board said after its shock pause at 3.85% that it wanted to wait for further evidence that inflation was sustainably hitting the midpoint of its 2-3% target. The quarterly CPI report due on July 30 is seen as the next major reading for the policy outlook. What Bloomberg Economics Says... 'Even with this soft patch, the labor market remains tight. That should allow the central bank to continue to pursue a gradual pace of easing.' — James McIntyre, economist. — For the full note, click here. Others are more downbeat. The data 'support our view that Australia's labor market is no longer tight and should not be a barrier for further cuts,' said Andrew Boak, chief economist for Australia at Goldman Sachs Group Inc. Australia's economic momentum remains subdued with consumer confidence and household spending tepid. Global uncertainty is also elevated in the run-up to President Donald Trump's tariff deadline on Aug. 1. The trade uncertainty is weighing on business investment and prompting firms to rethink hiring plans, economists said. Even though Australia got off lightly with a 10% baseline tariff rate, as an export-reliant economy its fortunes are heavily geared to those of its trading partners. 'Today's data will reinforce the weakness that is continuing within the private side of the Australian economy,' said Brendan Rynne, chief economist at KPMG, 'and by itself should be enough for the RBA to drop the cash rate at its next meeting.' Australian Prime Minister Anthony Albanese is in China this week as he looks to boost ties with his country's No.1 trading partner in order to generate local jobs and spur the domestic economy. The two sides agreed to keep expanding engagement in bilateral trade, climate change and people-to-people links, they said in a joint statement on Tuesday. Thursday's jobs report also showed: Annual employment growth was 2% versus an average of 3.4% between 2022 and 2024 The participation rate rose to 67.1% Full-time roles dropped by 38,200 while part-time positions advanced by 40,200 Underemployment rose to 6% while under-utilization climbed to 10.3% --With assistance from Matthew Burgess. (Updates markets, adds comments from analysts.) How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Forget DOGE. Musk Is Suddenly All In on AI How Hims Became the King of Knockoff Weight-Loss Drugs Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot The Quest for a Hangover-Free Buzz ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Australian Unemployment Unexpectedly Jumps to Four-Year High
(Bloomberg) -- Australian unemployment unexpectedly climbed to a four-year high in June as hiring almost stalled, suggesting a loosening of the labor market and bolstering the case for the Reserve Bank to reduce interest rates next month. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The currency declined by more than a half percent as the jobless rate increased to 4.3%, the highest level since November 2021 and exceeding forecasts for an unchanged 4.1%, data from the Australian Bureau of Statistics showed Thursday. Employment rose by 2,000 driven entirely by part-time roles, against economists' expectations of a 20,000 gain. The yield on policy-sensitive three-year government bonds fell almost 10 basis points while stocks advanced. Money market bets firmed to fully price a cut in August and another after that, with a better than 50% chance of a third. The data is crucial for RBA policymakers as the resilience of the labor market, and worries about it rekindling price pressures, have been key reasons why they've shown patience in the current easing cycle. The central bank has cut twice since the start of the year — shocking the market last week with a decision to hold — and today's weak report, following a subdued reading in May, could suggest a turn in fortunes. 'The consecutive poor jobs prints and the jump in unemployment rate to 4.3% is likely to spook the RBA,' said Alex Loo, a macro strategist at Toronto-Dominion Bank in Singapore. 'Investors are likely to read that the RBA may opt for consecutive cuts in August and September now.' The central bank's board said after its shock pause at 3.85% that it wanted to wait for further evidence that inflation was sustainably hitting the midpoint of its 2-3% target. The quarterly CPI report due on July 30 is seen as the next major reading for the policy outlook. What Bloomberg Economics Says... 'Even with this soft patch, the labor market remains tight. That should allow the central bank to continue to pursue a gradual pace of easing.' — James McIntyre, economist. — For the full note, click here. Others are more downbeat. The data 'support our view that Australia's labor market is no longer tight and should not be a barrier for further cuts,' said Andrew Boak, chief economist for Australia at Goldman Sachs Group Inc. Australia's economic momentum remains subdued with consumer confidence and household spending tepid. Global uncertainty is also elevated in the run-up to President Donald Trump's tariff deadline on Aug. 1. The trade uncertainty is weighing on business investment and prompting firms to rethink hiring plans, economists said. Even though Australia got off lightly with a 10% baseline tariff rate, as an export-reliant economy its fortunes are heavily geared to those of its trading partners. 'Today's data will reinforce the weakness that is continuing within the private side of the Australian economy,' said Brendan Rynne, chief economist at KPMG, 'and by itself should be enough for the RBA to drop the cash rate at its next meeting.' Australian Prime Minister Anthony Albanese is in China this week as he looks to boost ties with his country's No.1 trading partner in order to generate local jobs and spur the domestic economy. The two sides agreed to keep expanding engagement in bilateral trade, climate change and people-to-people links, they said in a joint statement on Tuesday. Thursday's jobs report also showed: Annual employment growth was 2% versus an average of 3.4% between 2022 and 2024 The participation rate rose to 67.1% Full-time roles dropped by 38,200 while part-time positions advanced by 40,200 Underemployment rose to 6% while under-utilization climbed to 10.3% --With assistance from Matthew Burgess. (Updates markets, adds comments from analysts.) How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Forget DOGE. Musk Is Suddenly All In on AI How Hims Became the King of Knockoff Weight-Loss Drugs Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot The Quest for a Hangover-Free Buzz ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
SBS Australia
7 days ago
- Business
- SBS Australia
Jobless rate rises to highest level since 2021 as number of unemployed Australians jumps
The jobless rate has risen to 4.3 per cent — its highest rate since 2021 — surpassing expectations as the number of unemployed Australians jumped. Financial markets had expected the rate to remain steady at 4.1 per cent in June, but there was a nearly 34,000 increase in people without work, according to the Australian Bureau of Statistics. Employment rose by 2,000, up 2 per cent compared to the same month last year, after part-time employment grew by 40,000 and full-time employment fell by 38,000 people. The Reserve Bank of Australia (RBA) will closely monitor the labour market before its next monetary policy meeting in August, NAB's head of Australian economics Gareth Spence said. "The focus for the RBA will be ensuring the labour market remains healthy going forward," Spence said "The timing of [rate] cuts is not super important. It's more about, where do they end up?" Most economists had pencilled in a 0.25 per cent cut on the back of slowing inflation growth. Spence still expected the jobless rate to climb to 4.4 per cent by the end of 2025, but said economic indicators point to the labour market still being in a strong position. RBA said in its latest monetary policy decision that labour market conditions remained tight. "Measures of labour under-utilisation are at relatively low rates and business surveys and liaison suggest that availability of labour is still a constraint for a range of employers. "Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators."
Yahoo
7 days ago
- Business
- Yahoo
Australia unemployment rate climbs to 3-1/2-year high in June
SYDNEY (Reuters) -Australian employment rose only marginally in June as the jobless rate jumped to the highest since late 2021, a surprisingly weak report that adds to the case for a cut in interest rates next month. Figures from the Australian Bureau of Statistics out on Thursday showed net employment rose 2,000 in June from May, when it fell 1,100. That was well short of market forecasts for a 20,000 increase, though the series has been volatile in recent months. Full-time jobs dropped 38,200 in June. The jobless rate popped up to 4.3%, from 4.1%, the highest reading since November 2021 and a jolt after months of stable readings. The participation rate ticked up to 67.1%, while hours worked fell back 0.9% after a sharp rise in May.
Bloomberg
7 days ago
- Business
- Bloomberg
Australian Unemployment Climbs to Four-Year High, Currency Drops
Australian unemployment unexpectedly climbed to a four-year high in June as hiring almost stalled, suggesting a loosening of the labor market and bolstering the case for the Reserve Bank to reduce interest rates next month. The currency declined a half-percent as the jobless rate advanced to 4.3%, the highest level since November 2021 and exceeding forecasts for an unchanged 4.1%, data from the Australian Bureau of Statistics showed Thursday. Employment rose by 2,000 driven entirely by part-time roles against economists' expectations of a 20,000 gain.
