Australian unemployment rate eased from 5.6% to 5.5% in Jan due to employment rising +16k and the participation rate eased to 65.6%, notes the research team at TDS.
“The full-time fell -50k (+302k in 2017) while part-time rose +66k (+101k in 2017).”
“Last year's cut in Sunday and public holiday penalty rates may be behind the jump in part-time jobs (only five occurrences >60k in the last decade). January brings many part-time summer jobs, and lower penalty rates could have boosted retail and hospitality employment (18% of jobs in 2017) more than usual.”
“The 1 July cut in penalty rates partly explains why the 3.3%/y jump in minimum wages failed to translate into the Q3 WCI report. On 21 Feb, we expect Q4 wages growth of +0.64%/qtr, lifting the annual rate to 2.2%/yr.”
“For the RBA: this is noise. Annual employment growth remains strong at 3.3% while the unemployment rate remains at 5½%. OIS is behind the curve, not priced for a rate hike until April 2019. The AUD at $US0.793 briefly dipped via the weak full-part-time mix but a softer USD is the main FX focus today.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.