Drop in unemployment bodes well for property purchasing
A drop in Australian unemployment levels could be promising for those looking to purchase a property or invest in real estate.
Favourable employment figures may be good news for nationwide economic growth. The Reserve Bank of Australia (RBA) has adopted a number of policy tools to ensure stable economic growth over the coming months and years, most recently highlighted by RBA Governor Glenn Stevens on April 1.
Drop in unemployment
Australian unemployment dropped by 1.2 per cent month-on-month to April, according to Roy Morgan Research released on May 2.
This means that 10.4 per cent of the workforce is currently unemployed.
For the month of April there were 7,568,000 full-time workers and 3,753,000 part-time workers. While the number of part-time workers in April decreased by 13,000, the number of full-time workers soared by 34,000.
The Roy Morgan unemployment figures are markedly higher than those released by the Australian Bureau of Statistics (ABS).
For instance, the ABS recorded a 5.8 per cent unemployment rate for the month of March, just one month prior to the Roy Morgan Research findings. However, both organisations take different approaches when calculating the figures.
Even so, both parties have found a dip in unemployment figures. Roy Morgan Research has pointed out the drop between March and April, while the ABS noted the month-on-month drop to March in an April 10 release.
Further reforms necessary
"Driving the fall in unemployment was a strong increase in full-time employment - up 204,000 to 7,568,000 while part-time employment was slightly down (3,753,000, down 13,000). Overall this means an increase in employment to 11,321,000 (up 191,000) - a new record high for employment," explained Gary Morgan of Roy Morgan research.
Mr Morgan touched upon the budget announcement, suggesting that the federal government needs to focus on reducing unemployment levels further.
"[The] government's top priority must be to immediately undertake significant labour market reforms to re-invigorate the Australian economy and provide real hope for unemployed and under-employed Australians," Mr Morgan continued.
However, the month-on-month decreases in unemployment could bode well for those looking to make the most of cheap home loans to invest in Australian property.