Australia’s Job Market Growth Slows

Australia’s job market grew at a slower-than-expected pace in October, following six months of strong expansion.

The total number of employed people increased by 15,900 in October, according to data from the Australian Bureau of Statistics released on Thursday. This figure was weaker than the expected 25,200 and marked a sharp decline from the 64,100 seen in the previous month.

Consequently, Australia’s participation rate, which measures the percentage of the population actively involved in the labor force, dipped slightly to 67.1% in October, falling short of predictions that it would remain at 67.2%. The unemployment rate held steady at 4.1%.

The latest data indicates a cooling trend in Australia’s labor market, which had been experiencing unexpected growth for the past six consecutive months.

A robust labor market has been crucial for the Reserve Bank of Australia in maintaining steady interest rates, and any additional cooling may prompt the central bank to consider rate cuts.

Moreover, the strength of the labor market has supported inflation, driven by strong consumer demand.

Further data released earlier this week also suggested a cooling effect in the labor market, as growth in Australia’s wage price index eased more than expected in the third quarter.