Invest
Unemployment rate at 5.1% after faster than expected recovery
Australia’s unemployment rate has fallen for the seventh consecutive month in a sign of economic recovery.
Unemployment rate at 5.1% after faster than expected recovery
Australia’s unemployment rate has fallen for the seventh consecutive month in a sign of economic recovery.
In the latest data released by the Australian Bureau of Statistics, it has been revealed that Australia’s seasonally adjusted unemployment rate fell to a low of 5.1 per cent in May.
Building on seven months of consecutive reductions, the move has put the unemployment rate in line with levels last seen in February 2020.
Bjorn Jarvis, head of labour statistics at the ABS, said, “The number of unemployed people fell by 53,000 in May, down to 701,000. The number of unemployed people has fallen by around 303,000 since the peak of 1 million unemployed people in July 2020.”
In April, ABS estimates put the unemployment rate at 5.3 per cent.
Meanwhile, the youth unemployment rate increased by 0.1 per cent to 10.7 per cent overall. Despite the upward trend, the ABS said that youth unemployment remained at record lows.
“The last time we saw a youth unemployment rate as low as in April and May 2021 was in January 2009,” Mr Jarvis said.
Underemployment also decreased by 0.3 per cent to 7.4 per cent.
According to the ABS, this represents the lowest level of underemployment since January 2014.
They noted that between April and May 2021, overall hours worked increased by 1.4 per cent in seasonally adjusted terms.
At a press conference, Treasurer Josh Frydenberg took credit for the recovery.
“These numbers are ahead of our budget expectations,” he said.
“What these numbers should do is give Australians confidence that there is light at the end of the tunnel. These numbers should give Australians confidence that the Morrison government’s economic plan is working.”
His confidence was echoed by Reserve Bank of Australia governor Philip Lowe.
Speaking at the Australian Farm Institute Conference in Towoomba, Mr Lowe commented on the unemployment rate and predicted that it will fall to 4.5 per cent by 2022.
“For the first time in many decades, unemployment in regional Australia is noticeably lower than it is in the capital cities. There is still a lot of variation across regions, but the average unemployment rate for regional Australia as a whole is at its lowest level in more than a decade.”
“The recovery here has been much stronger than was anticipated,” Mr Lowe said.
“The labour market is uneven, though. Many people are still struggling to find work, while, at the same time, some firms are reporting that they are finding it difficult to find workers. Many of these reports come from businesses in regional Australia, including those in the agricultural, hospitality, mining and construction sectors.”
RELATED ARTICLES
About the author
About the author
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
Economy
Economist calls for July RBA rate cut following inflation data
An economist from State Street Global Advisors has called for the Reserve Bank of Australia to cut interest rates in July following today's Consumer Price Index data for June. Read more
Economy
GDP data prompts economist to predict faster RBA rate cuts
Australia's latest GDP growth data has come in significantly below expectations, prompting an economist to suggest the Reserve Bank may need to ease monetary policy more aggressively. Read more
Economy
Global markets face turbulent start amid tariff concerns, but outlook remains cautious
Global equity and bond markets have experienced a turbulent start to 2025, primarily due to concerns that a potential tariff-driven trade war could heighten inflation and recession risks. Read more
Economy
RBA may cut rates faster if GDP data disappoints, economists say
The Reserve Bank of Australia may cut interest rates more quickly if next week's GDP data disappoints, economists said following today's consumer price index data for May. Read more
Economy
RBA delivers widely expected rate cut as inflation optimism balances global uncertainty
The Reserve Bank of Australia has cut the cash rate by 25 basis points, delivering on widespread market expectations while signalling a clearer directional shift towards less restrictive monetary ...Read more
Economy
Economist warns strong jobs data may delay further RBA rate cuts
Strong employment growth in April has put expectations for multiple interest rate cuts at risk, though upcoming economic data may clarify the need for lower rates, according to State Street Global ...Read more
Economy
Australian inflation continues downward trend, nearing RBA target
The Australian Bureau of Statistics (ABS) has reported that the Consumer Price Index (CPI) rose 2.7 per cent in the year to August, down from 3.5 per cent in July and 3.8 per cent in June. Read more
Economy
UK markets poised for gains after election, global geopolitical risks remain
Chris Iggo, Chief Investment Officer at AXA Investment Managers, has provided an optimistic outlook for UK markets following the recent general election, while cautioning about ongoing global ...Read more
