Clifford Bennett, Chief Economist at ACY Securities, dives into the recent unexpected increase in Australian unemployment rates. For the month of April, the unemployment rate surged from 3.5% to 3.7%, surpassing expectations set at 3.5%.

Bennett highlights this development as a significant crack in the economic forest, suggesting that it could be an indication of an impending recession. While the metaphorical tree hasn't fallen just yet, the rise in unemployment could be a harbinger of challenging times ahead.

Bennett predicts that this uptick in unemployment is only the beginning of a worsening trend that will catch many off guard, both in terms of its speed and magnitude.

During this period, temporary work experienced notable gains, whereas permanent employment took a sharp decline. Despite stable participation rates, there is a growing number of individuals struggling to find jobs, resulting in an increase in the pool of job seekers.

Bennett sheds light on the notion that Australia's apparent full employment during the COVID-19 pandemic was a consequence of the gap left by temporary workers and immigration restrictions. However, as more flights arrive with eager job seekers, it is likely that the group of relatively long-term unemployed individuals will once again face displacement as fresh eyes vie for existing jobs.

Join Clifford Bennett as he provides valuable insights into the recent rise in Australian unemployment and shares his perspective on the potential implications for the country's economy. Stay informed and gain a deeper understanding of the evolving employment landscape in Australia.

Note: The information discussed in this video is based on the latest data available at the time of recording and represents Clifford Bennett's views as of that date. Economic conditions may change, and viewers are encouraged to stay updated with the latest developments.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD trades around 0.6660 after another uneventful session

AUD/USD trades around 0.6660 after another uneventful session

The AUD/USD pair remained away from investors’ radar and holds on to familiar levels in the 0.6660 region. Australian calendar has nothing to offer on Wednesday, but the RBNZ monetary policy decision may spur action.

AUD/USD News

EUR/USD lacks directional strength, hovers around 1.0850

EUR/USD lacks directional strength, hovers around 1.0850

The EUR/USD pair extended its consolidative phase for the second consecutive day as financial markets missed a clear catalyst. Attention flips to the FOMC Meeting Minutes scheduled for mid-Wednesday.

EUR/USD News

Gold steadies around $2,420 ahead of FOMC Minutes

Gold steadies around $2,420 ahead of FOMC Minutes

Gold gained traction and climbed to $2,430 area in the American session, turning positive on the day. The pullback in the benchmark 10-year US Treasury bond yield helps XAU/USD stage a rebound following the sharp retreat seen from the all-time high set at the weekly opening at $2,450.

Gold News

Ethereum could see new all-time high following Fidelity and Grayscale updates on ETF application

Ethereum could see new all-time high following Fidelity and Grayscale updates on ETF application

Ethereum (ETH) continued its rally on Tuesday following filings on the Securities & Exchange Commission's (SEC) website showing Fidelity and Grayscale filed an amended S-1 registration and initial 19b-4, respectively, for their spot ETH ETF products.

Read more

RBNZ expected to keep key interest rate on hold as inflation pressures persist

RBNZ expected to keep key interest rate on hold as inflation pressures persist

The Reserve Bank of New Zealand is widely anticipated to maintain the OCR at 5.50%. The language in the policy statement is expected to remain hawkish. The New Zealand Dollar has room to extend its bullish momentum.

Read more

Majors

Cryptocurrencies

Signatures