Breaking: Australia: Unemployment Rate rises to 7.1%, loses 227.7K jobs in May, Aussie falls further

Australia’s Unemployment Rate rose to 7.1% in May, as the economy lost a whopping 227,700 jobs, the latest data published by the Australia Bureau of Statistics (ABS) showed this Thursday. The markets were expecting a job deduction of 125,000.  The economy saw a whopping 607.4K job loss in April.

Meanwhile, full-time jobs came in at -89.1K in May vs. -220.5K seen in April. The part-time employment fell 138.6K versus -371.5K last. The participation rate dropped to 62.9% in the reported month versus 63.7% expected and 63.5% previous.

May key points (Source: ABS)

Seasonally adjusted estimates (Monthly change)

Employment decreased 227,700 to 12,154,100 people. Full-time employment decreased 89,100 to 8,540,000 people and part-time employment decreased 138,600 to 3,614,100 people.

Unemployment increased 85,700 to 927,600 people.

Unemployment rate increased 0.7 pts to 7.1%.

Underemployment rate decreased 0.7 pts to 13.1%.

Underutilisation rate increased less than 0.1 pts to 20.2%.

Participation rate decreased by 0.7 pts to 62.9%.

Monthly hours worked in all jobs decreased 12.1 million hours to 1,604.7 million hours.

FX implication

The below-forecasts Australian jobs data combined with the downward revisions to the previous intensified the selling pressure on the AUD, knocking-off AUD/USD to a new two-day low of 0.6840. The spot is down 0.60% on the day.

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