Australia records unexpected drop in jobless rate
The unemployment rate in Australia recorded a surprise decline in July. This came as hours worked dropped and lesser job seekers alleviated the impact of Sydney lockdown in curbing the Delta virus variant outbreak.
Data from Australian Bureau of Statistics on Thursday showed a 4.6% slump in the jobless rate. Economists initially projected a 5% increase. There were 2,200 positions added in the economy in contrast to a foreseen 43,100 drop. The participation rate was down 66%.
The resilience is said to be temporary following reported COVID-19 outbreaks all over the east coast. The imposed lockdowns limit activity in Australia’s most populous region.
Despite this, the Reserve Bank expects to continue cutting bond purchases next month, betting the economy will rebound from a projected drop this quarter.
Australia’s sluggish nationwide vaccine rollout remains the largest roadblock to resuming normalcy in the economy and reopening borders shut in early 2020.