Australia’s unemployment rate remained steady at 4.1% in October, aligning with market expectations. The economy added 15,900 jobs during the month, a figure below the anticipated 25,000 and significantly less than the revised 61,300 increase in September. Despite this slowdown, annual job growth stood at a robust 2.7%. The participation rate experienced a slight decline to 67.1%, down from the previous month’s 67.2%. These figures suggest a cooling in employment growth, yet the labor market remains relatively tight.
The Reserve Bank of Australia (RBA) has maintained its policy rate at 4.35% for the past year, aiming to combat inflation. Headline inflation has decelerated to 2.8%, though core inflation persists at 3.5%. The RBA has indicated that monetary policy will remain restrictive until inflation aligns sustainably with its targets. The strength of the labor market, as evidenced by the steady unemployment rate and solid annual job growth, supports the RBA’s current stance on interest rates.
