Weekly Market Recap
Week in review
- Australia business confidence rises to 1.0
- Australia consumer confidence falls to 87.9
- Chinese real GDP 3.2% y/y in 2Q
- Global PMIs for manufacturing and services
- Australia preliminary retail sales
- Treasurer update on economic and fiscal outlook
Thought of the week
It may not seem like it but Australia is going back to work. The June employment report showed a stronger than expected 210,000 jobs added last month. The growth in employment was not strong enough to offset the rise in the participation rate however as more workers returned to the labour force, resulting in a rising unemployment rate. The job gains were all in part time employment as companies tentatively take on workers. More workers worked more hours as well. Hours worked increased 4.7% m/m even if still down in y/y terms (see chart). This helped to improve broader measures of labour market health such as underemployment. It will be these measures that are more indicative of how the labour market is faring in the face of COVID-19. The unemployment rate will continue to rise in the coming months and there is still ample capacity to argue for further fiscal support.
More jobs, more hours
Employment and hours worked, change year-over-year
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