Unemployment falls in line with RBA

The August Statement of Monetary Policy (SoMP) from the Reserve Bank of Australia (RBA), released on Tuesday, forecast that the unemployment rate would decline back to 4.2% before rising gradually to 4.3% over the forward estimates.

Today, the Australian Bureau of Statistics (ABS) released the July Labour Force survey, which posted a bounce back in the labour market, with the unemployment rate retracing back to 4.2% on the back of 24,540 new jobs, 60,460 of which were full-time.

As illustrated below by Alex Joiner from IFM Investors, the result was bang in line with RBA expectations.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.