Employment jumps by 47,500 jobs, overshooting forecast
Sarah Jones
The number: Australian employment increased by 47,500 in August, following a 58,200 gain the previous month. The unemployment rate was steady at 4.2 per cent. Consensus was for 25,000 jobs created and unemployment steady at 4.2 per cent. Why it matters: The labour market is considered key to help bring inflation back to the Reserve Bank’s target range. The central bank is also keen to maintain the job gains since the pandemic and will be sensitive to any deterioration. What has changed: The US Federal Reserve has kicked off its easing cycle with a jumbo 50 basis point rate cut on Thursday morning, paving the way for the Reserve Bank to follow suit – but not until next year because inflation remains elevated, according to economists and markets. What next: The Reserve Bank is widely expected to hold the cash rate at 4.35 per cent for the seventh consecutive meeting next week. It has effectively ruled out rate relief this year, with markets fully priced for a move in February.
