The Australian Unemployment Rate is the percentage of the total workforce in Australia that is unemployed and actively seeking employment during the previous month.
Its impact is indicative of the economic outlook because the number of unemployed people is an important signal of overall economic health and consumer spending is highly correlated with labor-market conditions.
In Australia, the Unemployment Rate Figure is often published by the Australian Bureau of Statistics (ABS). This gives a strong preview of the economic status quo because the economy is 100% efficient when employment thrives at full. The labor force among other metrics has a strong synergy with economic growth and development.
Australia has enjoyed 14 consecutive months of unemployment rate declines, most recently 4.5% in September, which is an indication of the decent job market recovery from the downturn experienced earlier as a result of the pandemic.
However, the resurgence of the virus has left the fate of Australia’s economic progression in doubt after strict lockdown measures were taken in other to avoid further spread of the delta variant which is considered to be more contagious by health practitioners.
With annual CPI inflation at 3.8% in the June quarter, Australian employment was up 267,000 to 13,308,000 in September driven by the increase in part-time employment, as full employment was virtually unchanged in September at 8,648,000.
According to the Reserve Bank of Australia Governor, Dr. Philip Lowe, “full employment would see a jobless rate close to 4%” and he is optimistic that the nation is on the right path towards attaining full employment which would, in turn, impact the economic progression going forward. The key drivers that will largely impact Australia’s unemployment rate will be the increasing rate of vaccination and the easing of restrictions on economic activities, as Australia has made significant progress on the vaccination front over the past few weeks and further progress is expected over the next few weeks. Currently, 13.2 million people have been fully vaccinated.
The conference Board forecast annual growth of 5.9% year over year in 2021. Regardless, traders should brace themselves up for a period of high volatility as the Unemployment report often has a great impact on the FOREX market. A decrease in Unemployment Rate will usually strengthen the AUD (Australian Dollar), while an increase in the unemployment rate will usually weaken the AUD (Australian Dollar).
Traders should always be aware that volatile markets provide great opportunities for making profits, as an increase in volatility can cause market swings for traders to capitalize on.
The currency pairs that include the AUD (Australian dollar) are mostly affected by the data release. The pairs include AUDUSD, AUDCAD, AUDCHF, AUDJPY, AUDNZD, etc.
Time Schedule for the next AUD Unemployment Rate Report:
Date: Thursday. October 14th, 2021.
Time: 1:30 am (GM + 1).
Author: Francis Idowu
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