Australian economy likely to have added 10,000 jobs in May

The data released last week indicated that the Australian economy grew at an annualized rate of 1.7 percent in the first quarter. Even with subdued growth, the labor market added 37,400 jobs in April. Most of the employment gains in the month was driven by part time employment, rising 49,000. This more than countered the 11,000 drop in full-time employment.

The participation rate remained stable at 64.8 percent as the unemployment rate dropped two tenths of a percentage point to 5.7 percent, approaching a low not seen since 2013, noted Wells Fargo. Even if employment growth has been solid, wage growth has been more stagnant.

However, the economy is likely to have added 10,000 jobs in May, according to consensus forecast. The forward momentum of labor market permitted the Reserve Bank of Australia to keep rates on hold at 1.5 percent during its latest meeting.