A slightly firmer than expected June labour force report with employment up 10,300 in the month against market expectation of zero and our forecast of +10,000. All of the employment growth in the month and more was part time, mostly female part time, also because the supply of labour rose faster than employment the unemployment rate lifted one notch to 5.7% from an upwardly revised 5.6% in May. Interestingly, employment rose by 104,700 in the first half of 2013 against 55,700 in the second half of 2012, an indication that employment growth has improved. Much of that improvement is in New South Wales where employment rose by 50,200 in the first half of 2013 from 31,700 in the second half of 2012. The unemployment rate in New South Wales edged down further below the 5.7% national average coming in at 5.4%, second lowest among the main six states to Western Australia at 4.6% and a sign that economic activity is gradually rebalancing to fill the gap as mining investment continues to fall. There is nothing in these numbers to stir the RBA from its current course holding the cash rate at 2.75%.
