Australian labor market data outperform expectations, despite a decline in full-time jobs

Labor market data continued to improve in July, with job numbers rising for the fifth consecutive month, yet most of these jobs were part-time, echoing earlier fears of a slump in the labor market. In July, the economy added 27.9 K jobs, compared to expectations of 19.8 K, while the June reading was revised higher to 20,000 jobs.

Following its 69.3 K jobs in June, full-time jobs declined in July by 20.3 K jobs, while part-time jobs rose by 48.2 K jobs after falling by 48 K last month.

The unemployment rate fell to 5.6% from 5.7%, while the participation rate in the labor market increased by 65.1%. The Australian labor market posted strong growth this year, as a positive sign that the economy is improving overall, but the Reserve Bank of Australia remains concerned about spare capacity in labor market, which keeps wages low.