[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [QUIET] · [BUSINESS]

3 clusters · 10 sources · 27 days · First seen · Last updated

Australian labor market slowdown

Overview

Australia’s labor market has shown signs of weakening, with the unemployment rate reaching a five-year high of 4.7% in September. This follows a steady increase from 4.1% in January.

In September, employment fell by 39,300, a decline that surprised economists who had anticipated an increase of 20,000 jobs. This downturn was largely driven by a loss of 73,600 part-time positions, even as full-time employment increased by 34,300. The underemployment rate rose to 6.3%, and the employment-to-population ratio fell to 63.6 per cent, while the participation rate decreased to 66.8 per cent.

Treasurer Jim Chalmers stated that although labor market conditions have eased, the jobs market remains “resilient despite the modest softening” observed in the September data. This cooling market creates complexity for the Reserve Bank of Australia as it weighs inflation risks against easing labor conditions. While rising unemployment has decreased some market expectations for a rate hike in November, some analysts still anticipate a 25bp hike as the central bank balances these competing factors.

Entities

Australian Bureau of Statistics · Sean Crick · Jim Chalmers · Federal Reserve Bank of Philadelphia · Michele Bullock

Timeline

  1. [BUSINESS] 2 sources
    Australia unemployment rate rises to 4.7 per cent

    Australia's unemployment rate hit 4.7 per cent in September, the highest in nearly five years, as employment fell by 39,300 jobs, defying economist predictions of growth.

  2. [BUSINESS] 4 sources
    Australia unemployment rate hits five-year high of 4.7%

    Australia’s unemployment rate rose to a five-year high of 4.7% in September, signaling a slowing labour market and complicating the Reserve Bank of Australia’s upcoming interest rate decisions.

  3. [BUSINESS] 5 sources
    Labor markets show mixed signals in Australia and the United States

    Australia saw a rise in employment to 39.5k in August despite a higher unemployment rate, while the Philly Fed survey showed declining regional activity but a surge in full-time hiring and capital expenditure.

Sources

actionforex.com · finnewsnetwork.com.au · forexlive.com · insidesmallbusiness.com.au · macrobusiness.com.au · perthnow.com.au · prommanow.com · psnews.com.au · savings.com.au · toray.co.jp

This summary has been updated 1 time: see revision history