By James Glynn
SYDNEY--Australia's unemployment rate remained around its lowest levels in half a century in May, but the latest data contained some hints that the job market could slow in the coming months.
Unemployment remained steady at 4.1% in May, but the economy shed 2,500 jobs, well short of the 20,000 increase expected by economists.
The data will likely add weight to calls for the Reserve Bank of Australia to cut interest rates a third time since February at its next policy meeting in July.
Economists have long puzzled at why the unemployment rate hasn't risen in the last year despite growing evidence that the economy is misfiring and that business conditions and confidence are softening.
Still, the data wasn't devoid of signs of strength, with full-time employment climbing by 38,700 in the month. The weakness came from part-time job creation, which recorded a fall of 41,100, the Australian Bureau of Statistics said Thursday.
New threats to the economy are emerging by the day, with businesses growing concerned about the haphazard nature of U.S. trade policies and fears over an escalation of fighting between Iran and Israel.
The unresolved war in Ukraine also remains a threat to peace in Europe.
Despite employment falling in May, it is up 2.3% compared with the same period a year ago, which is stronger than the prepandemic, 10-year average annual growth of 1.7%, the ABS said.
Hours worked increased 1.3% in May, following lower levels in the previous two months coinciding with the Easter holiday period and severe weather disruptions.
The underemployment rate fell by 0.1 percentage point to 5.9% in May, which was 0.8 percentage point lower than a year ago.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
06-18-25 2221ET
