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AUSTRALIA 
Job slump may reduce chance of interest rise
Thursday, 12 June, 2008
A slight rise in unemployment may reduce the chance of an imminent interest rate rise (AAP)
Borrowers were given some hope of respite from further rate hikes with the release of a report showing the unemployment rate edged up last month.
Tightness in the labour market and the potential for it to feed into wages demands, and in turn inflation, has been a concern for the Reserve Bank of Australia (RBA).
But the latest employment report from the Australian Bureau of Statistics (ABS) suggests the RBA is now more likely to remain on the interest rate sidelines in the months ahead.
The unemployment rate rose to 4.3 per cent in May, compared to an upwardly revised 4.3 per cent in April, the ABS said. The rate for April was originally set at 4.2 per cent.
The total number of people employed fell by 19,700, while the participation rate also slipped, falling from 65.5 per cent in April to 65.2 per cent.
Economists had expected the total number of people with jobs to rise by 13,500, and the unemployment rate to remain steady at 4.2 per cent.
The participation rate was forecast to hit 65.4 per cent.
Source: AAP/SBS
Tightness in the labour market and the potential for it to feed into wages demands, and in turn inflation, has been a concern for the Reserve Bank of Australia (RBA).
But the latest employment report from the Australian Bureau of Statistics (ABS) suggests the RBA is now more likely to remain on the interest rate sidelines in the months ahead.
The unemployment rate rose to 4.3 per cent in May, compared to an upwardly revised 4.3 per cent in April, the ABS said. The rate for April was originally set at 4.2 per cent.
The total number of people employed fell by 19,700, while the participation rate also slipped, falling from 65.5 per cent in April to 65.2 per cent.
Economists had expected the total number of people with jobs to rise by 13,500, and the unemployment rate to remain steady at 4.2 per cent.
The participation rate was forecast to hit 65.4 per cent.
Source: AAP/SBS
