Weekly Market Recap
Week in review
- Westpac consumer confidence up at 88.1
- NAB business confidence up to -45.7
- Australia unemployment rate rises to 6.2%
- Australia retail sales
- European and U.S. PMI surveys
- RBA meeting minutes
Thought of the week
The 1 percentage point rise in the unemployment rate to 6.2% is not great in any scenario but at face value was better than expected. The sharp fall in the participation rate played a part in keeping the unemployment rate low. If an unemployed worker is not looking for a job then they are not counted towards the unemployment rate. It is pretty hard to find a job when everything is closed. Hours worked is becoming a focus as staff on the JobKeeper scheme are counted as employed but work zero hours. Hours worked declined by 8% year-over-year in April, a much bigger drop than in the number of employed. The unemployment rate will continue to rise in the coming months as its likely that workers return to the labour force faster than new jobs are created or old jobs again become available.
Fewer jobs but much fewer hours
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.