The data is here from earlier: Australian Employment Change (May report): +42K (vs. expected +10K)
Westpac's response is here: Australian jobs report - analyst responses
This now via CBA (in brief, bolding mine):
- another super strong employment report
- The pace of employment growth has clearly accelerated ... jobs growth averaging 47k per month over the past three months. This is well above the 20k needed to accommodate the growing populaton.
- The unemployment rate ... lowest rate since early 2013. The participation rate has also increased. rising to 64.9% in May. This is another good sign of an improved labour market as people are more likely to participate when conditions are strong
- Underemployment still remains very high
- Hours worked ...There appears to be some catch up this month after recent weakness in the hours worked series
- Our wages model (CBA expect) the annual rate of wages growth remain around its recent subdued pace
Implications
- Indicators of the labour market have all moved in the right direction
- While there has been some doubts about the accuracy of the ABS employment data in recent months we think that the fact that we have had three very solid outcomes is a good sign that conditions have firmed
- In addition. the leading indicators of jobs growth are positive. Vacancies have trended higher and the employment conditions component of the NAB survey is pointing to continued solid jobs growth.
- We have said for a while now that it would take a deterioration in labour market conditions or a significant cooling in housing market conditions for the RBA to entertain the thought of another rate cut. The recent run of employment data takes thoughts of a rate cut off the table for now We think rates will remain on hold on for the rest of this year and into next.
AUD slipping further from the overnight resistance level