The nation’s unemployment rate has fallen to 5.5 per cent after another 42,200 jobs were created in Australia in May.
In a great sign for the national economy, full-time positions rose by 52,000 seasonally adjusted, while part-time employment fell by 10,000.
Despite economic growth as a whole remaining subdued to this point, it is actually the eighth month in a row we have seen employment rise. Since September last year the nation has added 124,000 full-time jobs.
The good news on jobs has obvious implications for the property market, with the likelihood of interest rate cuts later in the year somewhat blunted by the results.
“The much-stronger-than-anticipated rise in employment in May and the larger-than-expected fall in the unemployment rate will go some way to quashing growing talk of the chance of another interest rate cut by the RBA later this year,” Capital Economics’ Paul Dales told the ABC.
“Nonetheless, there still appears to be plenty of spare capacity in the labour market, which will keep wage growth weak and mean that the RBA probably won’t raise rates until 2019 either.”
CommSec chief economist Craig James said the falling jobless rate would give the economy a kick.
“This is a result to be celebrated by consumers and businesses alike,” he told The Australian.
“The Reserve Bank certainly won’t be in a rush to lift rates. But rate cuts can now be taken off the table.”
The good economic news comes at the time the property markets in Melbourne and Sydney begin to slow.
The Australian dollar jumped to US76.36c off the back of the news and of the resultant reduced expectation of further interest rate cuts from the RBA.