Job rate stable as home loan interest rates take effect

Consecutive home loan interest rate rises have cooled hiring, with the unemployment rate remaining stable at 5.4 per cent.

Data from the Australian Bureau of Statistics found unemployment rose 0.3 per cent in NSW, 0.1 per cent in Queensland and 0.2 per cent in South Australia to 5.8, 5.6 and 5.6 per cent respectively.

However, it wasn’t all bad news, overall full-time jobs rose by 37,500, overshadowing the fall in part-time employment of 3,900.

Moreover, unemployment fell 0.1 per cent in Victoria to 5.3 per cent; 0.3 per cent in Western Australia to 4.7 per cent and 0.1 per cent in the ACT.

But the overall easing of job growth has many economists predicting that the RBA will keep rates on hold when it meets again early next month.

UBS chief economist Scott Haslem said the latest job figures show there was “less frenetic” pressure in the labor market. Similarly, housing lending and retail activity has also softened in the last month, suggesting the RBA won’t move on interest rates in June.
Source The Adviser


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