Economist at UOB Group Lee Sue Ann reviews the latest labour market figures in Australia.
Key Quotes
“The Australian economy added 29,100 jobs last month, much better than expectations for the addition of 20,000 jobs following the increase of 115,200 jobs previously. As was the case in May, employment gains were driven by full time, up 51,600, while part time jobs fell 22,500. This may well indicate conversion of part-time jobs into full-time jobs…”.
“The participation rate held at an elevated 66.2%, close to the record-high of 66.3% seen in March. Accompanying the rise in employment, the unemployment rate fell 0.2ppts to 4.9%. This is 0.4ppts below that of March 2020 (pre-COVID) and is the lowest print for the unemployment rate since December 2010.”
“In all, we strongly believe that monetary policy is not going to be materially shifted until there is some sign that the unemployment rate has fallen sufficiently to start pushing up wages.”