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Australia's July Employment Falls 15.8K, Missing Forecasts; Unemployment Holds Steady Skip to content Home Forex News Australia’s July Employment Falls 15.8K, Missing Forecasts; Unemployment Holds Steady Source link...

The AUD/JPY cross attracts some sellers following the release of a dismal Australian jobs report, though it lacks follow-through and holds above the weekly low touched the previous day. Spot prices currently trade with modest gains around the 112.75 region and, for now, seem to have snapped a two-day losing streak.According to the official data published by the Australian Bureau of Statistics (ABS), the Unemployment Rate climbed to 4.5% in July from 4.4% in the previous month. Additional details revealed that the number of employed people fell by 15.8K during the reported month, down from a rise of 76.3K in June and missing estimates for a 15K rise. This comes on top of soft Australian Q2 CPI inflation data and forced traders to pare back bets for an immediate rate hike by the Reserve Bank of Australia (RBA), which is seen as weighing on the Australian Dollar (AUD) and the AUD/JPY cross.Strategists at Rabobank highlight that market expectations for further...

Australia’s labor market softened noticeably in July, with employment falling -15.8K after a revised 80.2K increase in June, missing expectations for an 11.4K gain. Unemployment rate rose from 4.4% to 4.5%, above 4.4% forecast. Weakness extended beyond headline: participation rate slipped from 67.0% to 66.9%, while employment-to-population ratio fell from 64.0% to 63.9%. Hours worked reinforced cooling signal, dropping -0.6% m/m, or 12 million hours, from 2.010bn to 1.998bn. Employment losses were concentrated among males, down -11K, while female employment fell -5K. Female full-time employment actually rose 17K, but this was outweighed by a 22K decline in part-time positions. Underemployment rate held at 6.4%, suggesting labor-market deterioration is still measured rather than broad-based. For RBA, report provides fresh evidence that tighter financial conditions are slowing employment after Deputy Governor Andrew Hauser said Wednesday Bank had already seen “a bit of a slowdown in consumption and employment growth, but needs to see more still.” July delivers more of that evidence, with employment, participation...

Australia's Part-Time Employment Drops By 32,200 In July, Reversing Previous Gains Skip to content Home Forex News Australia’s Part-Time Employment Drops by 32,200 in July, Reversing Previous Gains Source link...

(Aug 20): Australia’s unemployment rate unexpectedly rose in July, supporting the Reserve Bank’s (RBA) view that the labour market is likely to gradually loosen in the period ahead.The jobless rate climbed to 4.5% last month, surpassing economists’ estimate for it to remain unchanged at 4.4%, data from the Australian Bureau of Statistics showed on Thursday. The economy shed 15,800 jobs — driven entirely by part-time roles — compared with a predicted 12,000 increase.The Reserve Bank is still assessing the labour market to be “a little tight” after it raised interest rates at its first three meetings of the year to try to gain control over inflation. In its quarterly update of forecasts released last week, the central bank predicted the jobless rate would gradually drift higher over the next couple of years.Australia’s labour market has proved surprisingly resilient in the post-pandemic period with the jobless rate hovering around historic lows even during policy tightening campaigns.“Labour market conditions are still assessed...

Australia’s unemployment rate has risen to 4.5 per cent, adding weight to the argument that the Reserve Bank will halt raising interest rates. About 16,000 jobs fell out of the economy in July, the Australian Bureau of Statistics reported on Thursday. The result was down substantially from the 76,300 increase in June and wrong-footed forecasters, who had been tipping a rise in employment of 15,000. Consensus expectations were for the unemployment rate to hold steady at 4.4 per cent. “The majority of the fall in employment came from males, which fell by 11,000 people,” said Sean Crick, ABS head of labour statistics. “There were 10,000 fewer males employed part-time, and 1,000 fewer in full-time employment in July. “Female employment recorded a smaller fall of 5,000, with females employed part-time falling by 22,000 but full-time rising by 17,000.” The participation rate edged down 0.2 percentage points to 66.9 per cent While Australia’s relatively low unemployment rate is a bright spot in an economy hampered by the Middle East oil...

Australia's unemployment rate keeps slowly drifting higher.Data show the national unemployment rate rose to 4.5 per cent in July, up from 4.4 per cent in June.The unemployment rate has not been this high in the post-COVID era, in trend terms.The RBA believes it's doneIf the Reserve Bank's economic forecasts are right, then the governor says it is done raising interest rates.Economists say the rise in unemployment is consistent with the Reserve Bank's expectation that economic conditions will gradually slow over the coming year, and it makes the chance of another interest rate hike less likely.The number of employed people declined by 15,800 in July, driven by a large fall in part-time employment, and unemployment increased by 4,200 people."Along with slowing house prices, and the recent lower-than-expected June quarter inflation result, it's another reason to expect the RBA to remain benched at the upcoming late-September policy meeting," David Bassanese, chief economist at BetaShares, said.Unemployment expected to keep risingIn the Reserve Bank's...

Australia's labor market has sent another cooling signal, with July employment unexpectedly contracting and the unemployment rate climbing to its highest level in nearly five years, providing strong support for the Reserve Bank of Australia's decision to pause rate hikes. Data released Thursday by the Australian Bureau of Statistics showed net employment fell by 15,800 in July from June, far below market expectations of a 15,000 increase. The unemployment rate rose to 4.5% from 4.4% the previous month, exceeding economists' forecasts for an unchanged reading and marking the highest level since late 2021. The weak employment figures were immediately reflected in currency markets, with the Australian dollar slipping 0.2% to $0.7111 against the U.S. dollar. Market views remain divided on whether the RBA will implement a fourth rate hike this year, with attention now shifting to upcoming inflation data. Looking at the employment composition, full-time employment increased by 16,300 in July, indicating that permanent positions remain resilient. However, a sharp contraction in...

Australia’s 10-year government bond yield fell below 5%, reaching a one-week low after weak labor market data dampened the outlook for further RBA rate increases.Employment declined by 15,800 in July, reversing June’s upwardly revised gain of 80,300 and defying expectations of a 15,000 increase.This marked the first monthly drop since April.Meanwhile, the unemployment rate rose to 4.5%, above both market expectations and the previous month's 4.4%, reaching its highest level in three months.In its latest forecasts, the central bank projected the unemployment rate would rise to 4.8% by mid-2028 and remain around that level through the second half of the year, above the government's 4.5% estimate.While still relatively tight, Australia's labor market is showing signs of easing.The RBA raised the cash rate to 4.35% through three rate hikes earlier this year but kept policy unchanged at its June and August meetings while assessing the impact of previous tightening on the economy. Source link...