Australia’s labour market shows resilience despite May job dip – recap | Forexlive

Australian employment slipped slightly in May, with total jobs down 2,500, missing expectations for a 22,500 rise. However, the decline followed a strong April, and key indicators point to ongoing labour market strength.

• Unemployment rate held steady at 4.1%, where it’s been for over a year.

• Full-time jobs rose by 38,700, while total hours worked rebounded 1.3%.

• Participation rate edged lower to 67.0%.

• Underemployment and job ads remain stable, suggesting steady demand for labour.

Reuters convey remarks from Oxford Economics saying the dip reflects a normalisation after April’s surge, not a sudden downturn. Markets saw little impact, with rate cut expectations for July unchanged.

The RBA has already delivered two cuts this year, bringing the cash rate to 3.85%, as inflation eases and growth stays weak. Investors continue to price in around 70bps of further easing by year-end, with the jobless rate expected to peak only slightly higher at 4.3%.

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