Australia’s unemployment rate fell to its lowest level since 1974 in July, according to the latest figures released by the Australian Bureau of Statistics.
In particular, unemployment fell last month to 3.4% from 3.5% in June, as reported by CNBC.
“The drop in unemployment in July reflects an increasingly tight labor market, including high job vacancies and ongoing labor shortages, which resulted in the lowest unemployment rate since August 1974,” Bjorn noted. Jarvis, a statistical officer.
“In July, there were fewer unemployed (474,000) than job vacancies (480,000 in May).”
A tighter labor market could trigger further demand and inflation as well as further increases in interest rates.
In the minutes of the Reserve Bank of Australia’s meeting this week, the bank said that “employment growth could be stronger than expected and strong household balance sheets could support household consumption more than expected”.