Australia loses 39,300 jobs unexpectedly, easing bets on another RBA rate hike

In September, Australia experienced a decline in employment, with 39,300 jobs lost unexpectedly, contrary to economists' predictions of a rise. The Australian Bureau of Statistics reported that the unemployment rate increased to 4.7% from 4.6% in August, surpassing expectations of the rate staying unchanged. The participation rate, measuring the share of the population working or seeking work, dropped to 66.8% from 67.1%, falling below forecasts of 67.0%.

Part-time jobs decreased by 73,700, significantly outweighing the 34,400 increase in full-time employment. The underemployment rate also rose to 6.3% from 6.2%. Unemployment rose by 8,900 to reach 732,000. While the data indicate a weaker labor market, such monthly fluctuations are common. In trend terms, employment still grew by 15,700, and the unemployment rate remained steady at 4.6%.

The figures emerged following the Reserve Bank of Australia's decision to raise its cash rate by 25 basis points to 4.60%, marking its fourth increase this year to curb persistent inflation. This news could complicate the central bank's policy outlook, as a weaker labor market might help ease wage and inflation pressures over time.

The RBA's next policy meeting is scheduled for November 2-3. The AUD/USD exchange rate fell 0.3%, and the S&P/ASX 200 index saw a 0.4% reduction in losses.