JC Rothchild General - Australian Job Market Strengthens

Tokyo, Japan, May 27, 2021 --(PR.com)-- Australia’s rate of unemployment declined for the sixth month in a row in April to reach its lowest level in a year. Analysts at JC Rothchild General commented that the decline was in spite of a decrease in employment, as fewer people are seeking employment.

Data recently published by the Australian Bureau of Statistics revealed that there had been a loss of more than 30,000 jobs in April. JC Rothchild General analysts explained that this loss was due to a drop in part-time work, with full time work increasing by 33,800 jobs.

Unemployment fell to its lowest level since April last year before the impact of the pandemic hit the Australian job market. Although analysts surveyed had expected a rebound to a jobless rate of 5.5%, the numbers exceeded expectations to reach 5.6%.

“Although a recovery was expected, the data shows that the Australian job market has exhibited remarkable resilience. Unemployment now stands at the lowest level since the same period last year. This is an impressive rebound from a high point of 7.4% seen in July last year,” said Mr. Akifumi Endo, Chief Finance Officer at JC Rothchild General.

The recent data will undoubtedly be well received after the central bank of Australia had warned that jobs would likely be lost as the “jobkeeper” wage subsidy comes to an end.

However, although the job market appears to be in good shape in the wake of the pandemic, analysts at JC Rothchild General believe the Reserve Bank of Australia will not raise interest rates just yet.

The RBA holds an unemployment rate target of 4.5% and this has yet to be realized. Interest rates will only be lifted when that goal, as well as the inflation target is well within reach.