Australian jobs jump more than forecasts in Dec, unemployment rises Via Investing.com
Investing.com– Australia’s job market expanded more than expected in December, reflecting the strength of the labor market despite challenges from high interest rates and inflation.
The number grew by 56,300 in December, data from the Australian Bureau of Statistics showed on Thursday. Reading was higher than expected by 14,500 people, and up from 36,500 seen last month.
This saw Australia – which measures the percentage of people in the labor force – slightly increase to 67.1% in December, compared to expectations that it would remain steady at 67%.
It rose to 4% in December, in line with forecasts, and compared with a 3.9% rise in the previous month.
Australia has seen its labor market expand past expectations for eight of the past nine months, with a dip seen in October.
In November, a higher-than-normal number of people moved into jobs they were unemployed and waiting to start work in October. This trend continued in December as employment increased significantly, contributing to an increase in unemployment.
A tight labor market has been one of the concerns of the Reserve Bank of Australia in keeping interest rates steady. The RBA has held rates steady at almost a decade high, citing a strong labor market and sticky inflation.
Labor market strength also kept inflation supported amid strong consumer demand.
The RBA is scheduled to make its next announcement on February 18, 2025.
Market analysts widely expect the RBA to begin a rate-cutting cycle in 2025, with the first cut expected in May.
