Australia’s December unemployment rate falls to 5%
Australia's trend unemployment rate fell to 5% in December 2018, according to the latest information released by the Australian Bureau of Statistics (ABS).
In December unemployment fell 5%, as the economy added over 21 thousand jobs.
ABS chief economist, Bruce Hockman said: ‘The trend unemployment rate decreased 0.5 percentage points through 2018, and is now sitting at its lowest level since May 2011.’
According to the ABS, the net movement of employed in both trend and seasonally adjusted terms is reinforced by around 300,000 people entering and leaving employment in December.
Over the past year, trend employment increased by 2.3% to 284,100 above the average annual growth over the past 20 years.
ABS data also showed, full-time employment increased by 11,800 persons in December and part-time employment increased by 11,200 persons.
By state, the trend unemployment rate increased in Western Australia and the Northern Territory but decreased in Victoria. All other state unemployment rates remained steady, including the ACT.
Australian dollar price
On balance, markets responded positively to the employment numbers. The Aussie Dollar climbed slightly, bond prices fell very modestly, and Aussie stock received a boost.
IG market analyst, Kyle Rodda says overall, what was revealed in the labour market numbers gave a mixed report on the Australian economy.
‘The unemployment rate dropped, which is good, but only on the basis of a fall in the participation rate. Moreover, full-time employment contracted slightly. This suggests spare capacity in the economy and future sluggishness in wages growth.’ Mr Rodda said.
AUD/USD was up higher to $0.7165 on the back of the news, as investors factored in the solid job data.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Please see important Research Disclaimer.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.