Australia's unemployment rate remained unchanged at 4.2% in August, according to the latest figures from the Australian Bureau of Statistics (ABS).
Despite the steady jobless rate, the data reveals a stronger-than-anticipated labor market, potentially diminishing the likelihood of an imminent interest rate cut by the Reserve Bank of Australia (RBA).
The ABS reported that 47,500 new jobs were added last month, exceeding the forecast of 26,000. This figure contrasts with July's job growth of 58,200, before any revisions. Notably, while over 50,000 of the new positions were part-time, there was a decrease of 3,100 full-time jobs.
The current labor market conditions will be crucial in assessing whether the Australian economy remains robust after a series of 13 RBA interest rate hikes. The central bank recently suggested that jobless rates need to rise to support the continued reduction of inflation.
In contrast to Australia’s steady job figures, many developed nations are cutting interest rates, including the US Federal Reserve, which enacted its first rate cut in four years overnight.
Weakening employment numbers in Australia might signal the RBA to consider a rate cut, but today’s data makes such a move less likely in the near term.