The Australian Bureau of Statistics reported a remarkable economic achievement, announcing an addition of 88,000 jobs in June, which reduced unemployment by 0.4%. Australia's historic unemployment low of 3.5% reflects its rapid economic development.
Economists regard this outcome as a manifestation of the strong economic momentum, prompting consecutive interest rate hikes in May, June, and July. In light of inflation predicted to reach 7% by the year's end, this unemployment figure may potentially exert additional pressure on the Reserve Bank to hike interest rates.
The ABS head of labour data, Bjorn Jarvis, told The Guardian: “this is the lowest unemployment rate since August 1974, when it was 2.7% and the survey was quarterly”.
“The large fall in the unemployment rate this month reflects more people than usual entering employment and also lower than usual numbers of employed people becoming unemployed. Together, these flows reflect an increasingly tight labour market, with high demand for engaging and retaining workers, as well as ongoing labour shortages.”
“The growth continues to be noticeably stronger than before the (coronavirus) pandemic when the trend was around 20,000 people each month.”
The tight labor market characterizes high demand for workers and signifies a thriving economy that has improved the lives of countless families.
Australia's achievement is an infallible example of how effective economic policies can, under prudent governance, translate to victories for humanity, resulting in substantial benefits for the human condition.
Source: The Guardian. "Australia’s unemployment rate falls to 3.5% – the lowest in almost 50 years". https://www.theguardian.com/business/2022/jul/14/australiaa-unemployment-rate-3-5-percent-lowest-almost-50-years. 14/07/22. [Date accessed: 15/07/22].
Edited by: Adhitya Balachander.
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