Analyst Eamonn Sheridan says Australia’s May labour market outperformed expectations overall, 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 c

Analyst Eamonn Sheridan says Australia’s May labour market outperformed expectations overall, 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 favours the RBA standing pat. June inflation will be the key data ahead of the August meeting.