Australia loses 39,300 jobs as unemployment holds at 4.7%
About 39,300 fewer Australians had jobs in September, but the jobless rate held at 4.7%, ABC News Australia reported. The Australian Financial Review said part-time jobs fell by 73,700. The paper said the data cooled the chance of another rate rise from the Reserve Bank next month.
Australia's unemployment rate held at 4.7% in September as an estimated 39,300 fewer people had jobs, ABC News Australia reported, citing Australian Bureau of Statistics figures released October 15. The rate stayed at its highest level of the post-COVID era, the ABC reported. The Australian Financial Review called it a five-year high. August's rate was revised up from 4.6% to 4.7%, the ABC reported. The Australian Bureau of Statistics said in its release that, on unrounded figures, the rate rose 0.1 percentage point to 4.7%.
The drop came from a 73,700 fall in the number of people working part-time, while 34,400 more people found full-time work, the AFR reported. The number of unemployed people rose by 8,900, and the share of people working or looking for work slipped to 66.8% from 67%, the ABC reported.
The jobless rate averaged 4.63% over the September quarter, above the Reserve Bank of Australia's forecast of 4.5% for the December quarter, the ABC reported. Tom Kennedy of JP Morgan said the rate has risen 0.6 percentage points since the central bank began raising rates in February, according to the ABC. Outside the COVID-19 swings, that is the largest nine-month rise in more than a decade, he said.
The data tempered the prospect of another interest rate rise from the Reserve Bank next month, the AFR reported. The odds of a November hike had already fallen sharply after inflation came in lower than expected, the ABC reported.
Economists still disagree on what comes next, the ABC reported. "Given persistent price pressures across the economy, we continue to expect at least one rate hike before the end of the year, potentially as soon as Melbourne Cup Day," said EY senior economist Paula Gadsby, according to the ABC. CBA economist Ashwin Clarke said the data supports the bank's view that the Reserve Bank will hold rates steady in November, "though risks remain firmly tilted to the upside and the meeting is live," the ABC reported. Westpac's economists still expect a hike in November, the ABC reported.
Oxford Economics Australia economist Oscar Guth expects unemployment to keep rising and to top 4.8% late in 2027, the ABC reported.
What we know: Australia lost about 39,300 jobs in September, and unemployment held at 4.7%.
What we don't: Whether the Reserve Bank will raise rates again at its November meeting.
Where outlets agree ABC News Australia and the Australian Financial Review both report that unemployment held at 4.7% in September as about 39,000 people lost jobs.
Where they differ The outlets cited here report the same key facts so far.