- George Tharenou, an economist at UBS Group AG
Australia's jobless rate unexpectedly jumped, despite the fact that the economy added almost four times the number of new jobs expected in July. The number of people employed soared 38,500 from the previous month, overshooting economists forecast for a 10,000 increase. The number of full-time jobs grew by 12,400 in July, and part-time employment surge by 26,100. The report showed Australia created 162,900 jobs in the first seven months of this year, the best such period in the economy since 2008. Yet, the jobless rate rose to 6.3% in July, up from a revised 6.1% a month earlier, as a rise in the number of people entering the labour market exceeded new hires. The workforce participation rate climbed to 65.1% in the reported month, up from 64.8% in June.
The Reserve Bank of Australia is due to release its updated economic forecasts tomorrow along with the bank's quarterly Statement of Monetary Policy, which is predicted to show revisions made to the RBA's economic growth outlook. Earlier in the week, the RBA decided to keep its official cash rate on hold at a record-low 2%. The central bank said that the economy was likely to operate with a degree of spare capacity for some time, predicting that the unemployment rate would remain around the current level in the short run.
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