Australia's Unemployment Rate Falls To 4% With 40,000 New Jobs Added In May

Australia's unemployment rate dipped to 4%, which is 0.1% down from April, even as 40,000 jobs were added, and more people joined work full-time, the Bureau of Statistics data revealed Thursday.

This figure was, however, consistent with the economists' predictions and Reserve Bank of Australia's expectations, ABC News reported.

"At 4%, the unemployment rate is spot on the RBA's forecast for the second quarter," Tony Sycamore from financial institution IG said.

Contrary to last year, when part-time jobs were in demand, more people were now joining full-time roles. As full-time jobs have risen to 41,700 in May, part-time work has reduced by 2,100.

Chief economist of BetaShares David Bassanese said the latest figures will encourage investors and the RBA.

"As in the United States, the slow gradual rise in the unemployment rate is consistent with the 'goldilocks' or 'soft landing' scenario markets have long been hoping for," he stated.

The RBA expects the unemployment rate to rise to about 4.3% by June 2025.

"The latest jobs numbers show our labor market is an important source of strength in difficult times," The Guardian quoted Treasurer Jim Chalmers. "Despite our economy weakening substantially as a result of higher interest rates, persistent inflation and ongoing global uncertainty, our labor market remains resilient and that's clear from today's result."

Chalmers said 880,000 jobs had been added after Labor assumed office two years ago.

Meanwhile, Belinda Allen, a senior economist at the Commonwealth Bank, pointed out that 40,000 extra jobs should be created each month to match the swelling workforce.

The investors, however, did not show much enthusiasm to the job rate trends, as they didn't expect the latest figures to influence the RBA. The Australian dollar stayed at 66.5 US cent mark Thursday.

The RBA is expected to maintain the interest rates at 4.35% for a fifth time as it meets next week, Reuters reported.

The strong job market should encourage policy makers, after the economic growth slowed in the first quarter due to controlled spending by the people.