Australia’s unemployment rate unexpectedly fell in November as the nation’s golden streak of hiring gains extended, underscoring the resilience of the labor market to elevated interest rates and prompting traders to pare back bets of a February cut.
As Alex Joiner from IFM noted “Solid employment Growth in November and a tick down in the participation rate sees the unemployment rate get back down below 4%. It seems the RBA doesn’t particularly need to be in a hurry to cut rates, a February move still has a lot of optionality. It was a big full time number is encouraging and underscores a very solid print”.
Employment grew 0.2 per cent in November 2024, following an average monthly rise of 0.3 per cent since the middle of 2024, in line with recent population growth. “The recent growth in population has boosted the labour supply as employment has kept up with population growth,” the ABS noted.
Compared with Canada, the Eurozone and US, Australia seems stuck with higher inflation, yet the jobs market stays strong. This suggests the labour market continues to be relatively tight,” the ABS said.
Nothing here to suggest the RBA will cut soon. More pressure on households.
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