Unemployment edges to six month high

Steven Cross

The Reserve Bank could be forced to abandon its rate hold pattern next month, after the unemployment rate rose to its highest level in six months.

According to data from the Australian Bureau of Statistics, employment fell by 15,400 jobs last month.

HSBC economist Paul Bloxham said while the result wasn’t horrible, it obviously wasn’t great.

“The employment statistics show that growth is currently below trend, much as yesterday's GDP numbers also showed,” he said.

“This should leave the door open for a further RBA rate cut. As such, we still expect one more 25 basis point cut in the second quarter.”

Steven Cross

The Reserve Bank could be forced to abandon its rate hold pattern next month, after the unemployment rate rose to its highest level in six months.

According to data from the Australian Bureau of Statistics, employment fell by 15,400 jobs last month.

HSBC economist Paul Bloxham said while the result wasn’t horrible, it obviously wasn’t great.

“The employment statistics show that growth is currently below trend, much as yesterday's GDP numbers also showed,” he said.

“This should leave the door open for a further RBA rate cut. As such, we still expect one more 25 basis point cut in the second quarter.”

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