Australia’s unemployment rate remained unchanged for the third consecutive month at 4.1% in October, According to fresh data from the Australian Bureau of Statistics.
The result was in line with market expectations, signaling a steady labour market as employers continued to hire at a pace matching population growth.
The economy saw an addition of 9,700 full-time jobs and 6,200 part-time roles, bringing the net total to 15,900 new positions. Economists had expected a higher net job increase of 25,000.
Bjorn Jarvis, ABS head of labour statistics noted, “While employment grew in October, the 0.1% increase was the slowest growth in recent months. This was lower than each of the previous six months, when employment rose by an average of 0.3% per month.”
“With population growth in October outpacing the small rise in employment and unemployment, the participation rate fell slightly to 67.1%, while the employment-to-population ratio remained at the historical high of 64.4%."
Despite strong labour market conditions, inflation remains elevated, particularly in services, making the Reserve Bank of Australia less likely to cut interest rates in the immediate future.
The RBA has been closely monitoring inflation, which remains outside its 2%-3% target range. Investors had previously not anticipated an RBA rate cut until August 2025.
The continued stability in the labour market means that the RBA may maintain its cautious stance on monetary policy, ensuring the economy remains close to full employment while addressing inflationary pressures before considering rate cuts.