The Australian Bureau of Statistics (ABS) stated on Thursday that the country’s unemployment rate has fallen back indicating a positive progress in the job market and likely providing relief for the central bank.
The jobless rate edged down 5.7 percent its lowest in four months in April based on the data by the statistical agency.
Analysts’ estimate was a solid 5.9 percent but employment boosted by 37,400 in seasonally adjusted terms effortlessly beating forecasts of a 5,000 increase.
ABS previously reported an employment lift of 60,900 for the month of March which was changed a bit lower to present a 60,000 raise.
As a result of the strong increase in March and April, overall number of Australians with a job grew to 12.099 million the highest on record.
Largest gainer in employment for April was in Victoria with 18,600 new jobs but its unemployment rate lingered at 6.1 percent.
Western Australia follows suit with an increase of 13,200. Queensland gained 9,800 while South Australia jobs boost was at 5,000.
New South Wales (NSW) still has the lowest jobless rate in Australia at 4.7 percent with employment rate of 9,700.
The total involvement rate which talks about the number of people either employed or actively looking for work was steady at 64.8 percent.
Majority of the gains in April were contributed by part-time occupations which rose by 49,000 for the month while full-time jobs declined by 11,600 in the same month. Total work hours fell 0.3 percent.
An economists said that April’s total job raise were part-time. Full-time job rate decrease meant that employers effectively relegated some positions which was suggested by the overall work hours reduction.
That and the tenacity of soaring underemployment imply that wages increase will stay weak in the short to medium term.
Paul Dales said that the figures further ease any remaining possibilities of more rate cuts however the labor market will not trigger the Reserve Bank of Australia (RBA) to boost rates for a long time yet.
RBA held interest rates at a record low 1.50 percent for nine consecutive months including May as it steadies weak domestic demand and inflation against rocketing household debt.
The bank has constantly stated its worry on the subject of a blended labor market saying that a mix of high unemployment growth and slow increase in wages along with high household debts is likely to fall on expenses.
One reason why wages are increasing at a record low rate, weakening domestic expenditure is for the reason that over the past year, the growth in part-time jobs at 111,300 has improved faster than the rise in full-time employment of 80,700.
Paul Bloxhan said that he is expecting employment rate to progress at a yearly pace of about 2 to 2.5 percent over the rest of the year and the number of people unemployed to go down from the second half of 2017 therefore boosting wages growth.
After recovering from earlier losses with a gain of $0.7454 driven by the fall of the unemployment rate, the Australian dollar gained 0.02 percent to $0.7439 on Thursday.
The AU dollar recovered at 07:00 GMT after slipping but it went down again twice and then went back up by 08:30 GMT.
Meanwhile, Australia’s S&P/ASX 200 (AXJO) closed its session 0.8 percent down to AU$5,738.31, as of 07:35 GMT.