Australian employment figures have surprised economists, revealing an unexpected fall of 5,400 jobs in August, according to the latest data. This follows a gain of 24,500 jobs in July. The unemployment rate remained steady at 4.2 per cent, aligning with consensus forecasts reported by Bloomberg. Market expectations had anticipated the creation of 21,000 new jobs and a stable unemployment rate.
A closer look at the data reveals a decline in full-time employment, with 40,900 fewer full-time positions in August. This was partially offset by an increase in part-time employment, which rose by 35,500 jobs. The participation rate, which measures the proportion of Australians either employed or actively looking for work, remained at 66.8 per cent.
These figures will be closely scrutinised by the Reserve Bank of Australia (RBA) as it prepares for its upcoming board meeting at the end of the month, with its latest rate decision to be released on September 30. The RBA has already cut the cash rate to 3.6 per cent, and the latest jobs data will factor into its considerations regarding future monetary policy. The jobs market is a key driver of inflation, and a robust jobs market could challenge market expectations of an interest rate cut at the next RBA board meeting.
