Data published by the Australian Bureau of Statistics showed that the unemployment rate remained at 4.1% in September, confirming economists' forecasts, while the August figure was revised up to 4.1% from 4.2%. Meanwhile, the number of employees rose by 64,100 after an increase of 42,600 in August (revised from +47,500). Consensus estimates suggested an increase of 25,000. Full-time employment jumped by 51,600, to 10.03 million, while part-time employment grew by 12,500, to 4.49 million. In general, the data signaled that the labor market remains tight, and the Central Bank will not rush to ease monetary policy. Markets pared the chance for a first interest rate cut from the RBA in December to 30% from 46% before the data. They're now even not sure if a cut can come in February next year, with just 75% priced in.
The report also showed that the participation rate ticked up to 67.2% from 67.1% in August. Economists had expected the participation rate to be 67.1%. Meanwhile, hours worked rose 0.3% in September, after an increase of 0.4% in August, while the underemployment rate fell 0.1%, to 6.3%, all pointing to a strong labor market.