Australia's Jobless Rate Remains Steady at 4.1% in May, Participation Rate Holds at 67%

Australia's jobless rate remained steady at 4.1% in May, while the participation rate remained at 67%. The country's unemployment rate has been stable for three consecutive months, with the labor force increasing by 5,300 people. The steady rate suggests that the Australian economy is still experiencing a strong labor market, despite recent trade tensions.

Australia's unemployment rate remained steady at 4.1% in May, according to the latest Australian Bureau of Statistics (ABS) data [1]. The country's labor market continued to demonstrate resilience, with the participation rate remaining at 67% and the labor force increasing by 5,300 people [2].

The steady unemployment rate over the past three months underscores the strength of Australia's labor market, despite ongoing global trade tensions. The number of employed people fell by 52,800 to approximately 14.5 million, while unemployment decreased by 11,200 to 612,600 [1]. The participation rate, which measures the proportion of the working-age population actively seeking employment, dropped by 0.4 percentage points to 66.8% in February [1].

Bjorn Jarvis, head of labor statistics at the ABS, attributed the fall in employment to fewer older workers returning to the workforce in February [1]. This trend follows higher levels of employment among older age groups in recent years, particularly in 2024. Despite the decrease in employment in February, the seasonally adjusted employment level was still around 266,000 people, or 1.9%, higher than the same period in 2024 [1].

The employment-to-population ratio fell by 0.4 percentage points to 64.1% in February but remained close to its historical high of December 2024 [1]. The monthly hours worked decreased by 0.4% to 1.97 million, while part-time employment dropped by 17,000 to 4,505,900 people [1].

The upcoming Australian employment report, expected to be released on Thursday, May 18, at 01:30 GMT, is anticipated to show a modest increase in employment of 25,000 new job positions, with the unemployment rate holding steady at 4.1% [2]. The Australian Dollar (AUD) is expected to benefit from these upbeat figures, regardless of broader market sentiment.

The Reserve Bank of Australia (RBA) will closely monitor the employment data as it is part of its mandate to maintain full employment and price stability. The RBA's monetary policy decisions are influenced by labor market conditions, with high employment levels and wage growth being key indicators of economic health [2].

References:
[1] https://www.staffingindustry.com/news/global-daily-news/australias-unemployment-rate-remains-steady-at-41
[2] https://www.fxstreet.com/news/australia-unemployment-rate-expected-to-signal-a-broadly-stable-labor-market-202506182130