In May, Australia's employment situation exceeded expectations, with businesses hiring more full-time employees and the unemployment rate decreasing. This indicates that the labor market remains resilient despite high interest rates and weak consumer demand.
According to the Australian Bureau of Statistics, net employment increased by 39,700 jobs in May, surpassing the market expectation of 30,000. Full-time employment rose by 41,700, reversing the weakness seen in previous months. The unemployment rate fell from 4.1% to 4.0%, in line with market forecasts. The labor force participation rate remained at a historic high of 66.8%, despite a reduction in hours worked during the month.
With the ongoing strong performance of the job market, Australia's labor market shows significant resilience to high interest rates and subdued demand. The high participation rate indicates that more people are entering the workforce, which is a positive sign for economic development.
Furthermore, despite a reduction in working hours in May, the momentum of overall employment growth remains robust, particularly with the rise in full-time employment. This suggests that businesses maintain confidence in the future economic outlook. The Bureau's data shows that this growth is mainly concentrated in full-time positions, further supporting the stability of the labor market.
