May Labour Force Preview - Due.......>

AUSTRALIA DATA: May Labour Force Preview - Due 18/6/2020  1130 local time

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- May unemployment forecast 6.9% (vs April 6.2% and March 5.2% in March) as the

Covid-19 disruptions hit the economy.

- Government stimulus payments to keep workers on employers' books and cuts in

hours worked are disguising labour market weakness. Underemployment increased

from 8.8% to 13.7% in April, while hours worked fell 9%.

- The participation rate, which hit a record high of 66.2% in August 2019 fell

to 63.5% in April as people stopped looking for work.

- Despite the increase in unemployment the Reserve Bank of Australia believes

the situation could be much worse. RBA Board Minutes from the June meeting

released this week said the decline in hours worked "may be less than feared."