The unemployment rate was unchanged in Australia at 3.9% in May, according to the latest data published this Thursday by the Australian Bureau of Statistics. In April, the unemployment rate hit the lowest level since 1974, at 3.9%. The market consensus expected a decline to 3.8% in the reported month.
The economy created 60,000 jobs in May, compared to the 25,000 expected and the 4,000 in April. Full-time employment in May increased by 69,400 compared to 92,400 in the previous month, while part-time employment figures decreased by -8,700 compared to -88,400 in April.
Participation rate rose to 66.7% vs. 66.4% expected and 66.3% prior.
Why is employment data important to traders?
The Australian Bureau of Statistics (ABS) publishes an overview of trends in the Australian labor market, with the unemployment rate a closely watched indicator. It is released about 15 days after the end of the month and sheds light on general economic conditions as it is highly correlated with consumer spending and inflation. Despite the lagging nature of the indicator, it affects the Reserve Bank of Australia (RBA) interest rate decisions, in turn, moving the Australian dollar. The bullish figure tends to be positive for the Australian dollar.
Source: Fx Street
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