Australia Jobless Rate Dips

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Australia Jobless Rate Dips

Australia's Jobless Rate Dips To 3.7% In February

The employment market in Australia showed a sharp rebound in February. As a result, the jobless rate took a dive down and has even managed to beat the forecasts.

According to experts, this is a sign that Australia's labor market is still tight and that its weakness is nothing but an overstatement.

Aud Jumps By 0.5% Post Jobs Data

After the news, the Australian Dollar (AUD) jumped to 0.6622 with a jump of 0.5% while the bond futures (3-years) touched 96.35.

Meanwhile, the expectations for rate cuts from the RBA have now also eased off! That's why the market is now looking forward to 37 bps rate cuts instead of 44 bps.

According to the data from the Australian Bureau of Statistics, net employment went up by 116500 when compared with January's figures. Overall, that's the biggest job gain on a monthly level in almost 10 years.

For now, the jobless rate in Australia is now 3.7%, which is a comfortable number for even the RBA. Additionally, the rate has also gone down from 4.1%, which was a 2-year high.

According to the ABS, a lot more people started working in Australia especially after the end of the summer holiday. In a sense, it shows that the seasonal pattern has changed which led to the volatile results.

The bigger picture is that the numbers from the labor market are showing a lot of volatility. That's why it is safe to say that RBA will likely wait for a while to allow the dust to settle as it is still too early to make any changes based on the data.

However, the governor of RBA said that the labor market is still tight and that they are still looking at everything in terms of policy. They added that the jobs market is showing better balance but has yet to reach the levels they want it to be!

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