Labor markets show mixed signals in Australia and the United States

In Australia, employment rose by 39.5k in August, exceeding the expected gain of approximately 20k. However, the unemployment rate increased from 4.5% to 4.6% as the participation rate climbed to 67.1%. The growth was driven primarily by part-time positions, which rose by 46k, while full-time employment saw a decrease of 6k. Despite the rise in unemployment, the underemployment rate improved slightly from 6.3% to 6.2%, and total hours worked increased by 0.7%.

In the United States, the Philadelphia Fed nonmanufacturing survey reported a decline in regional activity, with the index falling to -22.0 from a previous -10.6. While new orders were soft, the full-time employment index saw a significant jump to its highest level since June 2022, with 27% of firms adding staff. Additionally, capital expenditure plans for equipment and software showed substantial growth, and 55% of firms expect third-quarter revenues to rise compared to the second quarter.