RBA to upgrade its labour market assessment - AmpGFX

The RBA will be inclined to upgrade its assessment of the labour market since last month, according to the research team at Amplifying Global FX Capital.  

Key Quotes

“In its 6 June policy statement, it said, “Indicators of the labour market remain mixed. Employment growth has been stronger over recent months, although growth in total hours worked remains weak.”

“Recent data shows that employment growth (1.6% 3mth-yoy) and aggregate hours (1.5% 3mth-yoy) have picked up significantly, with growth in full-time jobs (1.2% 3mth-yoy) taking over from part-time jobs (+2.5% 3mth-yoy).”

“Meanwhile, indicators of further employment remain solid.  The NAB business survey employment component has risen to its highest 3mma level since 2010 and ANZ job ads are rising at a solid 7.4%y/y rate.”

“The unemployment rate has fallen to 5.5%, a low since 2013.  And the participation rate has recovered from its fall late last year.  There is still slack in the labour market, but momentum has picked up.”