Australia’s unemployment rate unexpectedly surged to 4.5% in September — the highest in nearly four years — as more people entered the labour force, complicating the Reserve Bank of Australia’s balancing act between supporting growth and containing inflation.
The Australian Bureau of Statistics reported a net employment gain of 14,900, below expectations for a 20,000 rise, with full-time jobs up modestly after August’s sharp decline. Annual jobs growth has slowed to 1.3%, down from 3.5% at the start of the year.
The soft report prompted markets to ramp up bets on a November RBA rate cut to 71%, from 40% before the data. The Australian dollar fell 0.4% to around US$0.6480, while bond futures rallied and equities hit record highs on rate-cut hopes.
RBA Governor Michele Bullock said policymakers remain cautious, noting stronger consumer spending and stickier inflation in recent months. While core inflation is back within the RBA’s 2–3% target range, the latest jobs data suggest renewed economic slack could reopen the door to further easing before year-end.
ps. the next quarterly CPI data from Australia is due on October 29, ahead of the November 3-4 Reserve Bank of Australia meeting
This article was written by Eamonn Sheridan at investinglive.com.
