Australia’s Surprising Job Losses Bolster Case for Rate Cuts (2)

Australia’s economy surprisingly shed jobs in May, though unemployment held steady as fewer people sought work, suggesting a slight loosening of the labor market and bolstering the case for the Reserve Bank to reduce interest rates further.

Employment fell by 2,500, driven completely by part-time roles as full-time gained, against economists’ expectations for a 21,200 increase, data from the Australian Bureau of Statistics showed Thursday. The jobless rate held at 4.1% as the participation rate edged down to 67%.

While unemployment remains low, it has steadily inched up this year to hold above 4%, having hit a low of 3.4% ...