The unemployment rate in Australia was 4.1% in May from 4.1% in April, in accordance with the official data published by the Australian Bureau of Statistics (ABS) on Thursday. This number was in line with the market consensus.
In addition, the Australian change of employment reached -2.5 thousand. In May with 87.6 thousand In April (corrected from 89 thousand), compared to a consensus forecast of 25,000
The participation rate in Australia dropped to 67.0% in May, compared to 67.1% in April. Meanwhile, full -time employment increased by 38.7 thousand. In the same period from 58.6 thousand In previous reading (corrected from 59.5 thousand). Part -time employment decreased by 41.2k in May compared to 29 thousand. Before (changed from 29.5 thousand).
Sean Crick, head of ABS of Labor Statistics, said with key points listed below
Despite the fact that employment dropped by 2,000 people this month, it increased by 2.3 percent compared to May 2024, which is stronger than pre-enterral, 10-year average annual raise by 1.7 percent.
The employment rate for the population dropped by 0.1 percentage point to 64.2 percent, and the participation rate dropped by 0.1 percentage point to 67.0 percent.
Despite the slight decrease in the employment indicator for the population this month, the employment factor for women’s population increased by 0.1 percentage point to a record level of 60.9 percent.
Market reaction to data on employment of Australia
Employment data has a little effect on the Australian dollar (AUD). At the time of writing, the Aud/USD pair is 0.28% lower on the day to trade at 0.6490.
The price of the Australian dollar this week
The table below shows a percentage change in the Australian dollar (AUD) compared to the main currencies this week. The Australian dollar was the weakest in relation to the American dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.64% | 1.18% | 0.32% | 0.88% | -0.12% | 0.14% | 0.96% | |
| EUR | -0.64% | 0.42% | -0.32% | 0.24% | -0.63% | -0.48% | 0.32% | |
| GBP | -1,18% | -0.42% | -0.72% | -0.18% | -1.04% | -0.90% | -0.10% | |
| JPy | -0.32% | 0.32% | 0.72% | 0.53% | -0.74% | -0.53% | 0.22% | |
| BOOR | -0.88% | -0.24% | 0.18% | -0.53% | -0.90% | -0.70% | 0.08% | |
| Aud | 0.12% | 0.63% | 1.04% | 0.74% | 0.90% | 0.14% | 0.96% | |
| NZD | -0.14% | 0.48% | 0.90% | 0.53% | 0.70% | -0.14% | 0.81% | |
| CHF | -0.96% | -0.32% | 0.10% | -0.22% | -0.08% | -0.96% | -0.81% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose the Australian dollar on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent the Aud (base)/USD (quote).
In this section below it was published at 21:30 GMT on Thursday as a preview of the employment report in Australia
- It is forecasted that the Australian unemployment rate will remain at 4.1% in May.
- It is expected that the change of employment will publish a modest advance payment of 25,000. After a profit of 89,000 in April.
- The Australian dollar should take advantage of bullish numbers regardless of market moods.
The Australian Statistics Office (ABS) will publish a report on Thursday about employment in May at 01:30 GMT. The country is expected to add 25,000 recent work positions, and the unemployment rate will be maintained at a constant level of 4.1%. Before being announced, the Australian dollar (AUD) retains its overall strength, and the Aud/USD pair trads near the height of 2025 to 0.6545.
The Australian April employment report was bullish because the economy added 89 thousand. New jobs, including 59.5 thousand Full -time positions and 29.5 thousand Part -time.
Changing ABS employment separately reports job offers in full and incomplete hours. According to its definition, full -time work means work 38 or more hours a week and usually include additional benefits, but mainly constant income. On the other hand, part -time employment generally offers higher hourly rates, but there is no consistency and benefits. Therefore, full -time work is more essential than part -time when it comes to measuring the health of the labor market.
Australian unemployment rate perceived in May
It is expected that the Australian unemployment rate will remain unchanged at 4.1% in May, which means the third in a row stability.
Employment data is essential because they are part of the Reserve Bank of Australia (RBA) mandate. The Monetary Policy Council establishes monetary policy “in a way that it believes that it best contributes to both price stability and maintenance of full employment in Australia.”
The protocol from the May meeting showed that the fears of decision -makers turned around the tariffs of President Trump (USA) and “how the maintenance of the growth of trade barriers would affect the global economy.”
As for the labor market, the management noticed that it remained in line with previous forecasts. “The unemployment rate was about 4.1 percent from mid -2024, while the rate of insufficient employment fell slightly during this period.” Employment regained from a surprising fall registered in February “, a document.
In addition, some decision -makers wondered if it could cause a slow increase in wages more noticeably than they are currently forecast.
Meanwhile, the last data showed that the increase in wages in the country increased to 3.4% during the year to March, which means that wage growth for the first time increased from the quarter in June 2024. According to ABS, wages increased by 0.9% in the first quarter of 2025, compared to 0.7% published in the previous quarter.
In general, the upcoming report on Australian employment, if the result meets expectations, has a limited impact on the Australian dollar (AUD), because it is unlikely to affect the future Rba Monetary policy decisions. The central bank is to meet in July.
Finally, financial markets may not pay more attention to data among the ongoing crisis in the Middle East. The escalation of the conflict in Iran-Israel and US involvement maintain speculative interest in the mood of risk. In addition, lack of progress in commercial negotiations increases gloomy sentiments.
When is a report on Australian employment and how can this affect Aud/USD?
ABS will publish the May Employment report at the beginning of Thursday. As mentioned earlier, Australia is to add 25 -carat work stations in a month, while the unemployment rate is provided at 4.1%. Finally, the participation rate is to be 67.1%.
The employment report better than the expected will probably increase Aud, even if a more significant increase comes from part -time work. However, progress may be more balanced if the increase results from full -time positions. The opposite scenario is also important, and soft numbers weigh the Australian currency.
Valeria Bednarik, main analyst in FxstreetNotes: “The Aud/USD pair trads near the recently achieved height of 2025 to 0.6552, and at the same time publishes higher ups every week, maintaining the dominant stubborn trend. Considering the fears of the economic progress in the US in the trading war and his involvement in the Middle East, the American dollar (USD) seems to be under pressure.”
Bednarik adds: “On the other hand, an bullish employment report can push a pair of Aud/USD towards fresh ups 2025, with a threshold of 0.6600 in sight.”
Frequently asked questions about employment
The terms of the labor market are a key element of assessing the health of the economy, and thus the key engine of currency valuation. High employment or low unemployment has positive implications for consumer expenditure, and thus economic growth, increasing the value of the local currency. In addition, a very busy labor market – a situation where employees are missing to fill open positions – may also affect inflation levels, and thus monetary policy, because low work supply and high demand leads to higher wages.
The pace at which salaries grow in the economy is the key to decision -makers. High wage increases mean that households have more money to spend, usually leading to an raise in the prices of consumer goods. Unlike more unstable sources of inflation, such as energy prices, wage growth is seen as a key component of the basic and persistent inflation, because the raise in salaries is unlikely. Central banks around the world pay special attention to data on wage growth when deciding on monetary policy.
The weight that every central bank attributes to the terms of the labor market depends on its goals. Some central banks clearly have fines related to the labor market in addition to controlling inflation levels. For example, the US Federal Reserve (FED) has a double ticket to promote maximum employment and stable prices. Meanwhile, the only mandate of the European Central Bank (EBC) is to maintain inflation under control. Despite this, despite all seats, the working market conditions are an essential factor for decision -makers, taking into account its importance as a health meter of the economy and their direct relationship with inflation.
Economic indicator
Unemployment rate SA
Unemployment rate, issued by Australian Bureau of StatisticsThis is the number of unemployed employees divided by the total civil labor force, expressed as a percentage. If the rate increases, this indicates the lack of expansion on the Australian labor market and weakness in the Australian economy. Reducing the number is perceived as stubborn for the Australian dollar (AUD), while growth is seen as a bear.
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