Australian Economy Adds New Jobs, Unemployment Rate Retreats

Friday, 18 August 2017 11:11

The Australian labor market continued to grow in July, as employers increased job creation for the fifth consecutive month. Despite that, all gains were concentrated in the part time jobs, which lead to regenerate previous fears of a rescission in the work force. The Australian Bureau for Statistics said in a report issued on Thursday, that in terms of the seasonally adjusted conditions, the overall workforce increased by 27900 last month, with a 20,000 increase in June. Analysts called in a medium expectations for a net gain number at 19,800.

Work availability reduced by 20,300 after gaining 69,300 in June, and was higher than initially expected. The un-vacant jobs number increased by 48200 after a decrease of 48000 in the previous month.

Australian Unemployment rate decreased to 5.6% from 5.7% in the previous months. The workforce participation level, which tracks people working or actively seeking employment, increased by 0.1% to 65.1%. The Australian workforce growth has been strong throughout the year, which is a positive indication to the overall economy. With that in mind, the Federal Bank of Australia is still concerned about the reserve ability in the labor market- which is keeping wages low.

Part of the reserve work ability can be partially due to the gradual transformation towards part time jobs on the account of the more stable jobs on the basis of availability. It seems that the rise is slowly retreating to the favor of full time jobs, which can help in supporting wage growth. Analysts expect that the periodic wages growth will increase rapidly in the near future, although jobs in the services sector are unlikely to benefit from that.

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