PT Solid Gold Berjangka | Australian Jobs Surge in Oct, but Labor Market Still Seen Cooling
Ekonomi Australia Unemployment Rate Employment Change
Solid Gold Berjangka | The provided information gives an overview of the recent developments in Australia’s labor market as of October. Here are some key points:
- Employment Growth: The labor market in Australia experienced stronger-than-expected growth in October, with the total number of employed people increasing by 55,000. This surpassed expectations, which were set at a rise of 20,000 people.
- Participation Rate: The participation rate unexpectedly rose to a record high of 67%, up from 66.7% in the previous month. This indicates a high level of engagement in the labor force.
- Recent Trends: The October spike in employment contrasts with the slower growth observed in the previous two months. The three-month average for job growth had fallen below levels seen in October 2022, indicating a cooling in the labor market.
- Unemployment Rate: Despite the increase in employment, the unemployment rate in Australia rose slightly from 3.6% to 3.7%. This suggests that while more people were employed, there was also an increase in the number of individuals actively seeking employment.
- Hours Worked: There was a notable slowing in the pace of hours worked, with annual growth falling sharply to 1.7% from a peak of 5% earlier in the year. This suggests a potential slowdown in overall economic activity.
- Wage Growth: Australia experienced record-paced wage growth in the September quarter, contributing to higher inflation. However, analysts express skepticism about the sustainability of such spikes, attributing the September quarter’s results to a confluence of various factors.
- Reserve Bank of Australia (RBA): The RBA had been actively raising interest rates to counter inflation, with a cumulative increase of 425 basis points since early 2022. The RBA signaled during its November meeting that it might be done raising rates, anticipating a cooling in the labor market.
- Inflation and Monetary Policy: The strength of the labor market has been a challenge for the RBA in its efforts to control inflation. Higher wages have contributed to elevated consumer spending, impacting inflation dynamics. The central bank had expected some cooling in the labor market following its rate hikes.
In summary, while the labor market in Australia showed robust growth in October, there are indications of a cooling trend, with rising unemployment, slowing hours worked, and potential challenges for the RBA in managing inflation.