The number: Australian employment increased by just 2000 jobs in June, following an unexpected fall of 1000 workers in May, seasonally adjusted. The unemployment rate ticked up to 4.3 per cent. Consensus was for 20,000 jobs to be created and the jobless rate to stay at 4.1 per cent.
The detail: Australian Bureau of Statistics’ head of labour statistics, Sean Crick, said the rise in the jobless rate was driven by a 34,000 increase in the number of unemployed people.
Part-time employment grew by 40,000 people, offset by a 38,000-person fall in full-time employment. The employment-to-population ratio remained at 64.2 per cent, and the participation rate rose to 67.1 per cent.
Why it matters: The job market, a key driver of inflation, has been remarkably robust, so another strong report could have challenged market expectations of a rate cut in August.
What has changed: The Reserve Bank shocked economists and the market earlier this month after keeping the cash rate on hold at 3.85 per cent, despite a broad consensus for a move lower. The central bank said it wanted to wait for the quarterly inflation data, prompting traders to price in a strong chance of a rate cut next month.
What next: The ABS will publish the key quarterly inflation report on July 30.