Australia jobs unexpectedly fall in May; unemployment holds steady

Published 19-06-2025, 07:26 am
© Reuters.

Investing.com-- Australia’s job market unexpectedly shrank in May, while the unemployment rate remained steady, reflecting that the labor market was cooling, which could provide more room for the Reserve Bank of Australia to cut rates.

The total number of employed people fell by 2,500 in May, in contrast with a 87,600 jump in April, data from the Australian Bureau of Statistics showed on Thursday. The unexpected fall compared to expectations for a growth of 20,600. 

Australia’s participation rate, which gauges the percentage of the population that is in the labor sector, was largely steady at 67.0%, marginally below estimates of 67.1%. 

The unemployment rate remained steady at 4.1% in May, and came in line with forecasts.

The Reserve Bank of Australia lowered its interest rates last month for the second time this year, as inflation appeared to be falling under the central bank’s target range. Still, the central bank has signaled a data-driven approach to future easing amid global trade tensions fueled by U.S. tariffs.

Analysts now expect the RBA to begin cutting interest rates from August, but adopt a gradual and cautious approach to easing.

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