Australia’s Unemployment Rate rises to 4.2% in July vs. 4.1% expected

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Australia’s Unemployment Rate rises to 4.2% in July vs. 4.1% expected
EmploymentMacroeconomics
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Australia’s Unemployment Rate rose to 4.2% in July, compared with the expectations and the previous figure of 4.1%, according to the official data released by the Australian Bureau of Statistics (ABS) on Thursday.

Australia ’sUnemployment Raterose to 4.2% in July, compared with the expectations and the previous figure of 4.1%, according to the official data released by the Australia n Bureau of Statistics on Thursday. Furthermore, the Australia n Employment Change arrived at 58.2K in July from 50.2K in June, compared with the consensusforecastof 20.0K. The participation ratein Australia increased to 67.1% in July, compared to 66.9% in June. Meanwhile, Full-Time Employment increased by 60.

Moreover, a very tight labor market – a situation in which there is a shortage of workers to fill open positions – can also have implications on inflation levels because low labor supply and high demand leads to higher wages. Why is wage growth important? The pace at which salaries are growing in an economy is key for policymakers. High wage growth means that households have more money to spend, usually leading to price increases in consumer goods.

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