Unemployment Moves Lower Again

A larger than expected rise in the headline number of employed (+29.1K vs. median exp of +20.0K) was enough to drive the unemployment rate down to 4.9% (vs. expectations for a steady 5.1% print) as the participation rate held steady. The rise in headline jobs was driven solely by full-time jobs (+51.6K) as part-time employment fell (-22.5K). Underemployment nudged higher in June, edging up from the multi-year lows registered in May (7.9% vs. 7.4% in May), while the underutilisation rate nudged up from its own multi-year low (12.8% vs. 12.5% in May), with the upticks a result of the lockdown in Victoria.

• The ABS noted that "the declining unemployment rate continues to coincide with employers reporting high levels of job vacancies and difficulties in finding suitable people for them." The Bureau added that "hours worked data continues to provide the best indicator of the extent of labour market impacts from lockdowns. Hours worked in Victoria fell by 8.4% in June, compared with a 0.3% fall in employment. This highlights the extent to which people in Victoria had reduced hours or no work through the lockdown, without necessarily losing their jobs."