Back
12 Jun 2014
Australia: Stable labour market - Nomura
FXStreet (Bali) - Nomura notes that in today's Australian jobs, the solid rise in full-time employment keeps the labour market conditions stable.
Key Quotes
"The Australian economy lost 4,800 jobs in May, fewer than consensus‟s 10k and Nomura‟s 15k expectations. So far this year, the economy has gained 97.9k jobs. The unemployment rate remained at 5.8%, while the participation rate fell by a 0.1% to 64.7%. Full-time jobs gained by 22.2k, while part-time jobs fell by 27k."
"As we wrote after the April jobs data, the trend appears to support the idea that the unemployment rate has stopped climbing, which should provide further comfort to the Reserve Bank of Australia (RBA) as it shows that the domestic economy is healthy and that the rotation from the mining sector to the non-mining side of the economy is underway. Nevertheless, we do not believe today‟s report alters the likelihood of a policy change and we continue to believe that the RBA will remain on hold for a considerable period. Our forecast for the first hike in policy from the RBA remains in H1 2015."
"The Australian markets reacted little to the data. After a brief fall in AUD and in rates on the fall in the headline number, the release of the stronger full-time jobs number equalised markets which are little changed."
Key Quotes
"The Australian economy lost 4,800 jobs in May, fewer than consensus‟s 10k and Nomura‟s 15k expectations. So far this year, the economy has gained 97.9k jobs. The unemployment rate remained at 5.8%, while the participation rate fell by a 0.1% to 64.7%. Full-time jobs gained by 22.2k, while part-time jobs fell by 27k."
"As we wrote after the April jobs data, the trend appears to support the idea that the unemployment rate has stopped climbing, which should provide further comfort to the Reserve Bank of Australia (RBA) as it shows that the domestic economy is healthy and that the rotation from the mining sector to the non-mining side of the economy is underway. Nevertheless, we do not believe today‟s report alters the likelihood of a policy change and we continue to believe that the RBA will remain on hold for a considerable period. Our forecast for the first hike in policy from the RBA remains in H1 2015."
"The Australian markets reacted little to the data. After a brief fall in AUD and in rates on the fall in the headline number, the release of the stronger full-time jobs number equalised markets which are little changed."