Analyst Eamonn Sheridan says Australia’s May labor market outperformed
overall expectations, but a large downward revision to April and a rising share
of part-time employment alongside falling hours point to structural weakness.
Unemployment at 4.4% eases immediate upside pressure on the Reserve Bank of
Australia. The shift toward part-time work and lower hours gives the RBA scope
to delay tightening. Robust household spending and core inflation remaining
above target leave room for Westpac’s call for an August hike, but market
consensus still favors the RBA standing pat. June inflation will be the key
data ahead of the August meeting.
