Australia’s labor market weakened unexpectedly in August as full-time jobs dropped and fewer people participated in the workforce, though the unemployment rate held steady, official figures showed on Thursday.
The total number of employed people fell by 5,400 in August, defying expectations of a 21,200 rise, and reversed sharply from 24,500 additions recorded last month, data from the Australian Bureau of Statistics showed.
Australia’s unemployment rate remained steady at 4.2% in August from the previous month, meeting expectations. Hours worked fell 0.4% in the month, reflecting fewer people in full-time roles.
Full-time employment figures dropped nearly 41,000, in contrast to an over 60,000 growth in July.
“The fall in employment was driven by a drop of 41,000 in full-time jobs, partly offset by a 36,000 increase in part-time work,” said Sean Crick, ABS head of labour statistics.
The decline suggested that the labour market was gradually easing, which is supportive of more rate cuts by the Reserve Bank of Australia.
Last month, the RBA reduced rates by 25 basis points for the third time this year, and signalled further easing if incoming data supports the move. The central bank is expected to hold rates steady at its September meeting before cutting them again in November.
Source :
https://www.investing.com/news/economic-indicators/australia-jobs-unexpectedly-shrink-in-aug-as-fulltime-roles-slump-4243707
