Catherine Birch, Analyst at Australia and New Zealand (ANZ) Banking Group, is out with her take on the upbeat Australian labor market report released earlier today.
“A surprisingly strong employment gain of 41.1k in June was largely due to a 34.5k rise in full-time employment.
The unemployment rate remained at 5.2% with the participation rate increasing to a fresh record high of 66.1%. However, in trend terms, unemployment snuck up to 5.3%, back to where it was a year ago. Underemployment was up 0.2ppt to 8.4%, so total underutilisation rose.
There is still too much spare capacity in the labour market but the strong headline employment result weakens the domestic case for a September rate cut.”
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