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Fall in the jobless rate shocks economists

In a pleasant economic surprise, the unemployment rate has fallenĀ to 6 per cent in May.

It’s the second month in a row that the jobless rate has fallen, putting it now on a downward trend.

The Australian Bureau of Statistics reported that both the seasonally adjusted and the trend unemployment rates fell by 0.1 percentage points to 6 per cent.

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TheĀ number of people employed increased by a staggering 42,000 to 11,759,600. That’s more than twice as big a rise as was expected.

The ABS said the increase in employment was driven by increases in part-timeĀ employment for womenĀ (up 29,800) and full-time employment for menĀ (up 15,900).

The seasonally adjusted labour force participation rate was unchanged at 64.7 per cent in May 2015 from a revised April estimate.

The number of peopleĀ unemployed decreased by 22,000, and now stands at 745,200. However, this figure was driven by a decrease in the number of unemployed people who looked for full-time work, which decreased by 23,500 to 514,500.

ā€œThe seasonally adjusted underemployment rate was 8.5 per cent in May 2015, unchanged from February 2015,ā€ the ABS said. ā€œCombined with the unemployment rate of 6.0 per cent, the latest seasonally adjusted estimate of total labour force underutilisation was 14.5 per cent in May 2015, a decrease of 0.4 percentage points from February 2015.ā€

Some commentators have reacted with skepticism to the new data, asĀ the ABS was forced to revise previous reports due to a statistical error.

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