Adam Mastrosa’s Post

Interest Rates and Unemployment: A Delicate Balance Australia's #unemployment rate ticked up from 4.0% in May to 4.1% in June, per the Australian Bureau of Statistics. Yet, it's still lower than many other major countries. For context, the unemployment rates are 4.1% in the USA, 4.4% in the UK, 5.0% in China, and 6.4% in both Canada and the Eurozone. 📊 ✂ The Reserve Bank of Australia closely monitors unemployment as a critical indicator for setting the cash rate. If unemployment climbs alongside a weakening economy, it may eventually push inflation down, potentially prompting a rate cut. 👷♂️ Conversely, a tight labour market with sustained wage growth (currently at 4.1% annually) could drive inflation up, making the Reserve Bank cautious about reducing rates. 💵 This being said, inflation is still the number one priority for the RBA so questions will be asked if the >1%, we may end up with a rate hike adding further pressure to a flat economy. #Economy #Unemployment #InterestRates #ReserveBank #AustraliaEconomy #GlobalEconomy #Inflation

𝗝𝗼𝗯𝘀 𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗲𝘀 𝗦𝘁𝗿𝗼𝗻𝗴 𝗥𝘂𝗻 The national unemployment rate remains in extraordinarily low territory, despite ticking up from 3.7% in February to 3.8% in March, according to the Australian Bureau of Statistics. The unemployment rate has had a ‘3’ in front of it every month since June 2022, apart from January when it climbed to 4.1%. When the Reserve Bank of Australia (RBA) started increasing the cash rate in May 2022, some economists assumed that would lead to a sharp rise in unemployment, because the RBA’s interest rate rises were designed to slow the economy (and thereby reduce inflation). Surprisingly, though, unemployment is lower now than it was then (4.0%). This strong employment market is a mixed blessing. On the one hand, it's great news that so many Australians have jobs. On the other hand, the Reserve Bank might be wary of reducing the cash rate anytime soon, in case it adds too much heat to the economy and puts upward pressure on inflation. #economy #jobs #money

The national unemployment rate remains in extraordinarily low territory, despite ticking up from 3.7% in February to 3.8% in March, according to the Australian Bureau of Statistics. The unemployment rate has had a ‘3’ in front of it every month since June 2022, apart from January when it climbed to 4.1%. When the Reserve Bank of Australia (RBA) started increasing the cash rate in May 2022, some economists assumed that would lead to a sharp rise in unemployment, because the RBA’s interest rate rises were designed to slow the economy (and thereby reduce inflation). Surprisingly, though, unemployment is lower now than it was then (4.0%). This strong employment market is a mixed blessing. On the one hand, it's great news that so many Australians have jobs. On the other hand, the Reserve Bank might be wary of reducing the cash rate anytime soon, in case it adds too much heat to the economy and puts upward pressure on inflation. Please feel free to reach out to us. You can book a 15 minute call with Luke here https://bit.ly/49qG9ll #economy #jobs #money

Australia’s Economic Puzzle: Steady Inflation Amid Low Unemployment 📉🔍 Australia’s inflation rate holds firm at 3.4% for the third month, as per the Australian Bureau of Statistics, still overshooting the Reserve Bank of Australia (RBA)’s 2-3% target range. Despite this, the silver lining of falling unemployment to 3.7% signals a strong job market, though it complicates the RBA’s approach to interest rates amidst fears of fueling further inflation 💼. This economic balancing act suggests cautious optimism. Businesses and professionals must remain vigilant, strategizing around the potential for continued inflation and stable interest rates. As Australia navigates these challenges, staying informed and agile will be key to leveraging opportunities in a dynamic economic landscape. #AustralianEconomy #Inflation #Unemployment #InterestRates

#Unemployment stays at 3.9%. The national unemployment rate has now remained under 4% for 22 consecutive months Unemployment clocked in at 3.9% in December, the same as November, according to the latest data from the Australian Bureau of Statistics. Despite a slowdown in the #economy – which the Reserve Bank has deliberately created by raising interest rates – unemployment remains at historically low levels. The Reserve Bank of Australia recently forecast that unemployment would rise to 4% in June, while Treasury is expecting it to be 4.25%.

Australian Economic Quarterly Snapshot - June 2024   The Reserve Bank of Australia is anticipated to maintain the cash rate at 4.35% well into the latter half of 2024. Concerns about inflation driven by demand, a tight labour market, and a stimulative Federal Budget present a risk of another rate hike before the expected cut. Inflation has more than halved from its December 2022 peak to 3.6%, while it remains above the target level of 2-3%. The labour market remains tight with the unemployment rate of 4.0%, lower than the 7.5% peak during COVID but higher than the 3.5% seen recently. Australia's population has grown steadily, with an increase of 651,000 people recorded in the latest release (year to December 2023). As of 24 July 2024, $1 AUD is equivalent to $0.66 USD. Source: Reserve Bank of Australia Data is annualised as of latest release For more on Labassa Capital, visit www.labassa.com #LabassaCapital #CommercialRealEstate #ResidentialRealEstate #RealEstateDevelopment #PrivateCredit #PrivateDebt #RealEstate #EconomicSnapshot #AustralianEconomy

Australia's unemployment rate increased slightly to 4.1% in June from 4% in May, despite the addition of 50,000 jobs, according to the Australian Bureau of Statistics (ABS). ABS spokesperson Bjorn Jarvis said the rise in unemployment was primarily due to a small increase in the number of Australians either working or actively seeking work. "The participation rate in June was only 0.1 percentage point lower than the historical high of 67.0% in November 2023," he said (see image). "The employment-to-population ratio rose by 0.1 percentage point to 64.2%, which was also close to its historical high of 64.4% in November 2023.” These labour statistics, along with the June quarter inflation data, will be key topics of discussion for the Reserve Bank of Australia's upcoming meeting on 5-6 August, where they will decide on the official interest rate. If you’re interested in buying property in Sydney, contact me on benhawley@azurafinancial.com.au or 0413 766 888. #economy #unemployment #interestrates

𝗨𝗻𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗦𝘁𝗮𝘆𝘀 𝗮𝘁 𝟯.𝟵% The national unemployment rate has now remained under 4% for 22 consecutive months Unemployment clocked in at 3.9% in December, the same as November, according to the latest data from the Australian Bureau of Statistics. Despite a slowdown in the economy – which the Reserve Bank has deliberately created by raising interest rates – unemployment remains at historically low levels. The Reserve Bank recently forecast that unemployment would rise to 4% in June, while Treasury is expecting it to be 4.25%. #economy #jobs #money

Unemployment rises to 4.1% 👨🏭👷👩💼🧑🌾 The unemployment rate now has a '4' in front of it, after hovering in the 3s for 22 consecutive months. Unemployment rose from 3.9% in December to 4.1% in January, according to the Australian Bureau of Statistics. The gradual increase in unemployment over the past year (see graph) has been caused by the battle against inflation. The Reserve Bank has pushed up interest rates to take the heat out of the economy – which has both reduced inflation and (predictably) increased unemployment. Unemployment is expected to be 4.3% at the end of this year, according to recent Reserve Bank forecasts. #economy #jobs #money #realestateaccountants

𝗨𝗻𝗲𝗺𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗥𝗶𝘀𝗲𝘀 𝘁𝗼 𝟰.𝟭% The unemployment rate now has a '4' in front of it, after hovering in the 3s for 22 consecutive months. Unemployment rose from 3.9% in December to 4.1% in January, according to the Australian Bureau of Statistics. The gradual increase in unemployment over the past year (see graph) has been caused by the battle against inflation. The Reserve Bank has pushed up interest rates to take the heat out of the economy – which has both reduced inflation and (predictably) increased unemployment. Unemployment is expected to be 4.3% at the end of this year, according to recent Reserve Bank forecasts. #economy #jobs #money