The unemployment rate has fallen to its lowest level since March 2013, dropping from 5.7 per cent to 5.5 per cent, latest Australian Bureau of Statistics (ABS) data has revealed.
Employment surged by as much as 42,000 jobs from April, smashing expectations for a 10,000 job gain and providing a boost to the Aussie dollar which has shot up more than a third of a cent to US76.27¢, nudging a two-month high from U75.88¢.
Overall, employment has grown by 98,200 so far this year. The strong jobs creation was all in full-time employment, with 52,100 full-time positions being added to the economy while 10,100 part-time jobs fell away.
In fact, according to ABS data, 60% of jobs created in Australia over the last 12 months to May have been full-time jobs, a significant shift from 6 months ago.
Meanwhile, hours worked rose 1.9 per cent, while the underutilisation rate dipped 0.4 percentage points to 14.4 per cent.
Supporting the RBA’s latest decision to leave the official cash rate on hold, improvement in the labour market has been underway since the start of the year with policy makers expecting more of the same, albeit at a slower pace, as the lower dollar supports exports and services sector growth intensifies.
