Australian employment surged by 76,000 in June, pushing participation to near-record highs and complicating the RBA’s policy outlook.
Australian employment rose by 76,000 jobs in June, the largest monthly gain in over a year, as labor force participation climbed 0.3 percentage points to 67%. The unemployment rate edged up to 4.43% from 4.36%, reflecting more workers entering the labor market rather than job losses.
Prior to the report, markets had priced in a 20% chance of an RBA rate hike; that probability jumped to 30% following the data. The central bank’s August meeting is now under closer scrutiny, though next week’s inflation figures and end-of-month housing data remain key inputs.
The AUD found support from the report, as traders anticipate a more hawkish tone from the RBA in the coming weeks despite expectations of no immediate policy change.