The latest unemployment figures are better than expected and could weaken the Reserve Bank's argument for a large rate cut this year.
The jobless rate remains unchanged on 4.3 per cent, which has defied the grave predictions spurred on by our slowing economy.
Some experts say a point five per cent rate cut could be on the cards, but ANZ chief economist Saul Eslake thinks today's figures will put that talk to rest.
“What they do argue against is any sense of panic on the part of the Reserve Bank, or talk in recent days that the bank might cut rates by half a percentage point rather than the usual quarter of a percentage point,” he told LIVENEWS.com.au.
South Australia reported the largest fall in unemployment in July, easing to 4.6 per cent from 4.8 per cent, while in Queensland it declined to 3.7 per cent from 3.8 per cent and in Western Australia it fell to 3.1 per cent from 3.2 per cent.
The jobless rate was unchanged at 4.6 per cent in Victoria, but rose to 4.5 per cent from 4.2 per cent in Tasmania and was up to 4.7 per cent in NSW from 4.6 per cent the previous month.
In the territories, the unemployment rate fell to 2.9 per cent in the Northern Territory in July from 3.2 per cent, while in the ACT it was unchanged at 2.7 per cent for a fourth straight month.
