The Australian Bureau of Statistics (ABS) released its June 2023 employment report on Thursday, July 20. According to the report, the unemployment rate remained steady at 3.5% after a downward revision. However, employment numbers saw a positive change, increasing by 32,600.
The rise in Australian employment was mainly driven by an increase in full-time jobs. Which saw a growth of 34,600 positions. On the other hand, part-time employment experienced a decline of 2,000 positions. This resulted in an overall participation rate of 66.2%, marking the highest level since February 2020.
The ABS also highlighted the revised May data, indicating that the unemployment rate for that month was revised down from 3.6% to 3.5%. This change was attributed to the reclassification of some individuals who were previously considered unemployed.
Given the strong employment data, there are expectations that the Reserve Bank of Australia (RBA) will take action at its upcoming meeting on August 2. The possibility of a 0.50 percentage point increase in interest rates is being considered to address the current inflation surge. Inflation is presently running at 5.1%, the highest in two decades.
The RBA has been actively raising interest rates as a measure to contain the surging inflation. With the ongoing economic situation, such a move seems probable in an effort to stabilize the economy and maintain financial balance.
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