Australia jobs surge in May as labour market defies economic downturn
2023.06.15 02:46
© Reuters.
Investing.com — Australia’s labour sector grew substantially more than expected in May, data showed on Thursday, rebounding from a decline in the prior month and indicating that the job market remained tight despite slowing economic growth.
The in the country grew by 75,900 in May, data from the Australian Bureau of Statistics (ABS) showed. The reading was much higher than expectations for growth of 15,000 people, and marked a strong rebound from a decline of 4,300 people in the prior month.
unexpectedly fell to 3.6% after a brief increase in the prior month, moving closer to near 50-year lows. The employment-to-population ratio hit a record high of 64.5%.
High demand for skilled labour and increased vacancies remained the key drivers of the Australian job market, continuing a trend seen over the past year as companies struggled to fill key roles.
The reading comes after the Australian government recently hiked the minimum wage to help offset the impact of high inflation. But wage growth has otherwise remained muted this year, amid cooling economic activity.
“Looking across the range of indicators – strong growth in hours worked, the elevated employment-to-population ratio and participation rate, along with the low unemployment and underemployment rates – they all point to a continuing tight labour market,” Bjorn Jarvis, ABS head of labour statistics said in a note.
Strength in the labour market points to more upward pressure for , which could elicit more interest rate hikes by the in the coming months.
A strong labour market has also remained one of the key bright spots for the Australian economy in recent months, as it grapples with otherwise worsening trends.
The economy , and is expected to see below-average growth in the coming months due to pressure from high inflation and rising interest rates.
