Australia’s unemployment rate rose to its highest level in four years (November 2021) in June, reaching 4.3%, according to figures released by the Australian Bureau of Statistics (ABS) at the beginning of the Asian session today, Thursday, July 17, after remaining stable at 4.1% in May and June. Expectations had indicated that it would also remain stable in July at 4.1%, coinciding with an increase in the labor force participation rate to 67.1% from 67.0% in May.
The Australian economy added an estimated 2,000 jobs in June, bringing the total number of jobs to 14,619,300, after losing approximately 2,000 jobs in May, while expectations had indicated the creation of approximately 21,000 jobs. The Australian dollar fell more than 70 pips against the US dollar this morning, trading at 0.6465. Today’s figures supported market expectations that the Reserve Bank of Australia will cut interest rates at its next meeting in August, after surprising markets by keeping them at 3.85% at its last meeting on July 8.