Aussie dollar pops upon strong employment data

New ABS figures show Australia’s unemployment rate in the month of August 2018 has decreased to 5.3%, dropping slighting from the trend unemployment rate of 5.4% in July 2018.

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The Australian dollar jumped slightly upon the news. AUD/USD jumped from 0.7177 to 0.7799.

ABS Chief Economist Bruce Hockman said both trend unemployment and underemployment rates havealso dropped since August.

“As a result, underutilisation in Australia was at its lowest level since late 2013, at 13.6 per cent." Mr Hockman said.

According to the ABS, seasonly adjusted terms show 44,000 new jobs added to in total, almost double what was expected (18,000).

Participation rates jumped slightly higher by 0.2% to 65.7%, and the seasonally adjusted unemployment rate remained steady at 5.3 % as economists predicted.

While full-time employment rose 33,700 in seasonally adjusted terms, part time rose by 10,200.

The underemployment rate also dropped to 8.1%, while full-time employment increased in August by 21,000.

"For those people aged 15 to 64 years, trend participation was the highest on record. Female participation in this age group, at 73.2 per cent, was also a record high," Mr Hockman said.

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