May jobless falls – and WA plunges

The latest ABS unemployment rate seasonally adjusted fell sharply over May down over the month from 5.7 per cent to 5.5 per cent and the lowest monthly rate recorded since February 2013. Jobs growth was also strong over May with employment increasing by 42,000

A closer look at the data however reveals some volatility. The major states recorded mixed results with the NSW jobless rate increasing from 4.7 percent to 4.8 per cent, Victoria down from 6.1 per cent to 6.0 per cent and Queensland down from 6.3 to 6.1 percent.

Although these series results are unremarkable, the Western Australia jobless rate fell sharply from fell 5.9 per cent to 5.5 per cent and followed a similar steep decline over the previous month from 6.5 per cent to 5.9 per cent. The WA unemployment rate has therefore dropped by an astonishing full one percent in two months to its lowest level for two years.

The WA economy has been a clear and predictable national underperformer since the end of the resources boom so hopefully the latest ABS data signals a strong turnaround rather than the product of volatile data modelling.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket.