Australia's Job Surge Muted by Rising Unemployment Rate, Market Reacts Positively
May 17, 2024Australia's job market exceeded expectations in April, adding 38,500 jobs against the forecast of 22,400.
Despite job growth, the unemployment rate rose to 4.1% due to an increased labor force participation.
The S&P/ASX 200 Index surged by 1.72%, influenced by the employment data and hitting a five-week high.
Economists are observing signs of a weakening labor market, with reduced annual wage growth and a lack of clear fiscal policy to support living standards.
The Reserve Bank of Australia may reconsider its interest rate policy as the labor market shows potential softening.
A shift in employment towards more part-time work was noted, alongside increased labor market participation.
The central bank's forecasts for unemployment to reach 4% by June may be impacted by current trends and labor hoarding practices.
Summary based on 6 sources
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Sources
The Guardian • May 16, 2024
Australia’s unemployment rate rises to 4.1% reducing chance of another RBA interest rate hikeThe Sydney Morning Herald • May 16, 2024
Unemployment increase reduces chance of higher interest ratesSeeking Alpha • May 16, 2024
Australia's jobless rate rises to 3-month peak of 4.1% in AprilThe Age • May 16, 2024
Unemployment increase reduces chance of higher interest rates