Latest Data from ABS reveals a significant surge in new employment opportunities as the number of jobs created increased by 58000 as compared on a MoM basis with June – 2024 beating the expected 20000 increase following the regular growth trend.
Here the number of unemployed grew by 24000 while employed grew by around 58000 across the month so the net inflow increased by 16000, showing positive movement across different verticals. Another interesting metric released by ABS is that while full-time employment increased by 40,900, part-time employment also increased by 7000. Full-time employment grew almost 17 times that of part-time indicating people are choosing to move back to regular more stable jobs over the gig economy that took off very rapidly post-pandemic era.
The employment-to-population ratio also increased by 0.1 %to 64.3% just below the all-time high levels of 64.4 % in November 2023, indicating strong participation of people in jobs and at the same time indicating employment opportunities generated were faster than population growth also indicating loosening labor market conditions in time to come.
This would further result in better supply and demand alignment in time to come, this all indicates positive movement in the economy for new employment opportunities being generated in the country. At the same time, this would also have a conflicting impact on the RBA’s Cash rate policies as the RBA is closely monitoring various parameters where CPI levels and labor market conditions are on top of the priority list for the central bank. As the situation evolves it would be imperative to see how these new opportunities impact existing inflation levels affecting further rate reduction or rate hikes by the central bank.
Although this can be safely concluded that any changes would not take place as far as cash rates are concerned at least not before next year.
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