New Jobs Added To Au Economy

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New Jobs Added To Au Economy

47.5k New Jobs Added To Australian Economy In August

Australia's labor market has exceeded the forecasts for the 3rd month in a row. During August, the jobless rate remained steady while a record number of new jobs were added to the economy.

The readings from the labor market show that it remains resilient despite the high interest rate in Australia. That's why experts believe that the RBA is in no hurry to cut the rates in the short-term.

Australian Dollar Gains 0.2%

However, some market players believe that the RBA will likely make a move at the next policy meeting or at least provide a timeline for doing so.

After the release of the Australian Jobs data, the AUD recovered its losses and gained 0.2%. For now, AUD/USD is trading near 0.6781 and is green for the day.

As for the chances of a rate cut by the RBA, the next rate cut will likely be in December, with a chance of 62%. Before the release of the jobs data, the odds were standing near 75%.

According to the data from the Australian Bureau of Statistics, 47,500 new jobs were added in August. This was above the 25K forecast made by the economists.

As for the unemployment rate, it remains steady at 4.2%, while the participation rate has jumped to 67.1%.

Experts believe that the month-by-month data of the Australian job market is highly volatile. But if we look at the average data for the 3 months, it shows that the market remains tight.

Despite this, the first rate cut from the RBA will likely happen in 2025. So, for those looking forward to a rate cut in the next few months, that's not going to happen.

Since November, the RBA has not changed its policy and has maintained the interest rate near 4.35%. It seems that the RBA wants to really make sure that the inflation will remain in check.

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