Australia's labor market saw a modest increase in October 2024, with employment rising by 15.9 thousand to 14.54 million.
Australia's employment growth slows in October
However, this gain was below market expectations of a 25 thousand increase and marked a slowdown from the 61.3 thousand surge recorded in September, which was later revised downward. The employment growth was driven by a 9.7 thousand rise in full-time jobs, a significant deceleration compared to the previous month's robust gains. Part-time employment also grew by 6.2 thousand, a notable drop from the 12.5 thousand added in September.
Despite the softer figures for October, the labor market showed resilience over the longer term. Year-on-year, total employment increased by 387.1 thousand, translating to a 2.7% growth rate. Analysts suggest that while the labor market remains strong, the slower pace of job creation in recent months could indicate a cooling trend, potentially easing pressure on the Reserve Bank of Australia (RBA) to adjust its monetary policy.
Unemployment remained steady at 4.1% for the third consecutive month, aligning with market expectations and indicating that the job market is relatively stable. However, the RBA has signaled that interest rates will likely remain current until more evidence of inflation is under control, suggesting a cautious approach to future policy adjustments.
Aussie dollar pressured by stronger US dollar and weak employment data
Externally, the Australian dollar faced headwinds from a strengthening US dollar, bolstered by renewed “Trump trades” and expectations of resilient US economic growth. This external pressure, combined with softer domestic employment data, adds to the challenges facing Australia's economic outlook as it navigates global uncertainties.
