Australia’s unemployment rate was 4.1% in April, an increase that exceeded expectations, despite the addition of 38,500 new jobs over the same period, driven largely by part-time work, the
Despite job growth, interest rates are at 12-year highs and it is expected that the unemployment rate may rise. Against this backdrop, traders are forecasting about a 50% probability of a December rate cut by the Australian Federal Reserve.
Following the release of this report, the market has seen policy-sensitive three-year bond yields slip, while the value of the Australian dollar has fallen.
Oxford Research Institute’s Sean Langcake believes the new workforce will positively impact the job market. Economist Diana Mousina points out that this year continues the unstable start to the year and suggests not paying too much attention to volatile unemployment data.
Australia’s unemployment rate increased slightly but low, the central bank maintained 4.35% interest rate anti-inflation. The government price control measures, the first quarter inflation of 3.6% exceeded expectations. Australian Federal Reserve President Bullock is concerned about inflation, the target by the end of the year down to 2.75%.
Faced with the job market and inflation situation, in order to improve this environment, the following strategies can be considered:
The first is to provide skills training such as job transfer and re-education, which will help the unemployed and low-skilled workers to upgrade their skills and meet the changing occupational demand. Second is to optimize the immigration policy to attract skilled migrants, especially in the medical, engineering and IT sectors. Finally to control inflation, the Australian Federal Reserve may need to adjust its monetary policy, including interest rate policy, at the right time in order to stabilize the economy and keep inflation within a reasonable range.
By adopting the above measures, Australia can reduce the unemployment rate and promote the stable development of the economy to achieve the desired results.
