Australian labour market report is a bit of a mixed bag

Employment Change: +12.0K

  • expected 19.0K, prior 22.6K

Unemployment Rate: 5.4%

  • expected 5.5%, prior 5.6%

Full Time Employment Change: -20.6K

  • prior was +32.7K

Part Time Employment Change: +32.6K

  • prior was -10.0K

Participation Rate: 65.5%

  • expected 65.6%, prior was 65.6%

The above is the watched 'seasonally adjusted' data

For the 'trend' data from the ABS:

Trend employment increased by around 16,000 persons in May 2018

  • part-time employment increasing by 12,000 persons
  • full-time employment by 4,000 persons
  • This continued the recent slowing of employment growth, particularly full-time employment growth.The net increase of 16,000 persons comprised of well over 300,000 people entering employment, and more than 300,000 leaving employment in the month.
  • Over the past year, trend employment increased by 318,000 persons or 2.6 per cent, which was above the average year-on-year growth over the past 20 years (2.0 per cent).

monthly trend unemployment rate remained steady at 5.5 per cent

  • Over the year to May, the unemployment rate declined 0.2 per cent, while the underemployment rate also fell by 0.2 per cent over the year to 8.5 per cent.
  • The underemployment rate, which is the proportion of people who are working but would like to work more hours, remains below the peak of 8.7 per cent seen in 2017
  • "The latest data tells us that over the past year both the trend unemployment rate and underemployment rate declined by 0.2 per cent, resulting in the underutilisation rate declining 0.4 per cent to 13.9 per cent," the Chief Economist for the ABS, Bruce Hockman, said.

trend participation rate decreased by less than 0.1 per cent to 65.5 per cent in May 2018, after the April figure was revised down

The trend monthly hours worked increased by 2.8 million hours or 0.2 per cent in May 2018, and by 2.7 per cent over the past year.

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Its the 'trend' data the ABS urge us to place more emphasis on.

OK.

It shows a slowing in employment growth. Which does not sound too bad, but faster growth will be needed to absorb entrants into the workforce at the least. And to have an upward pressure impact on wages. In this context this is a bit of a disappointing report.

Still, headline growth (but a miss) and a lower unemployment rate (but lower participation). Mixed bag at best. "Trend' hours worked is a positive.

AUD is barely changed after a wee wiggle.