Australian jobs market defies slowdown

A much better-than-expected 41,000 jobs were created in July, although the unemployment rate stayed unchanged at 5.2pc.

The Reserve Bank is closely watching the jobs market. Picture: AAP

Australia’s labour market continues to defy signs of a slowdown in the economy, with more than 41,000 jobs created in July.

Still, the unemployment rate was unchanged at a seasonally adjusted 5.2 per cent in July as more people looked for work. Economists had expected an unemployment rate of 5.2 per cent.

The number of people employed rose by 41,100, compared with an expected 14,000 rise, the Australian Bureau of Statistics said.

The number of people in full-time work rose by 34,500, while those in part-time work rose by 6700.

The Aussie dollar rose after the jobless figures were released, from US67.55c to US67.88c.

An estimate of second-quarter GDP growth, due next month, is expected to show the economy growing at its slowest annual pace in a decade with weak consumer spending a major brake on activity.

Official interest rates were cut in June and July as the Reserve Bank of Australia reduced its estimate for full employment to 4.5 per cent from 5.0 per cent.

High levels of spare capacity in the job market mean it will take some time to achieve full employment. Some economists expect the RBA to eventually adopt alternative policy measures in order to maintain momentum in the economy and push the unemployment rate lower.

Data released on Thursday showed wages growth was better than expected in the second quarter due to a strong lift in pay for public servants. However, the annual pace of wages growth remained weak.

Dow Jones Newswires