As job advertisements continue their golden run in the country despite the imposition of nationwide lockdowns to control COVID-19, Australian labour markets stay strong.
Data also shows a 0.4% surge in retail sales in May promising a positive trend of consumption. The housing sector saw a decline of 7.1% in May over the last month. That followed months of gains which still left approvals up 53% on a year earlier.
The Australian & New Zealand Banking Sector reported a 3.0% rise in job ads in June. It was reported to be 6.8% in May.
With a growth rate of 129%, it was the 13th consecutive month of profits and gains in comparison to the last year when the labour market was facing the brunt of nationwide lockdown. ANZ senior economist Catherine Birch, said that, "Recent history shows that workers laid off or stood down during lockdowns tend to be reinstated or find new jobs quickly once restrictions lift, given the underlying strength in the labour market and overall demand.”
The information released by the Australian government depicted a 23% increase in vacancies in the three months leading up to May. Birch went on to say that, "Vacancies are twice their pre-pandemic level, and there are now 1.9 unemployed people per vacancy, easily the lowest ratio on record." Obviously, the unemployment rate has a lot further to fall.
The unemployment rate, though, has fallen much faster than what was anticipated by the administrative and law-making authorities. It was at 5% in April (and had risen up to 7.5% in July 2020),
One of the objectives of the Reserve Bank of Australia is to lower the rates of unemployment and joblessness in the country to 4% or even lower. That is the only sustainable way to ensure wage growth and defy inflation after years of minimum gains.
The central bank holds its July policy meeting on Tuesday. The upward growth in the employment domain will possibly lead to formulation of policies to guide its massive stimulus program.