Australia‘s Unemployment Rate Dips to 4.3 Per Cent as Employment growth Slows
Australia’sโค unemployment rate edged โdown toโ 4.3 per cent, even as employment growth continuesโ to gradually slow, โaccording โto recent data.
EY chief economist Cherelle Murphy noted teh Reserve Bank of Australia (RBA)โ has previouslyโฃ indicated the economy โคis nearing its supply capacity, potentially limiting further cuts to โขthe cash rate without โขtriggering inflation. “Recent data showing a surprise uptick in underlying inflation and a continuationโฃ ofโข the tight โjobs market means there may be noโข more interest โrate cuts in the foreseeable future,” she said.
However,โ Murphy also highlightedโค a deceleration in โemployment growth over the past two years. Employment growthโฃ has slowed to 1.6 per cent in annual terms, likely due to easing demand for โคlabor in sectors likeโฃ health, education, โคand general government services.
Callam pickering, Asia Pacificโฃ economist at global job site Indeed, concurred with this assessment. “Australian employment growth hasโข been sluggish thisโข year,” he said.
Through the first ten months of the year, employment increased by just 160,000 people, a notable decrease compared to the 325,000 increase โฃrecorded during the same โperiod last year. โPickering attributed the slowdown โคprimarily to reduced hiring in healthโ care and social assistanceโข – aโค sector that fueled much of Australia’s post-pandemic โjob growth.
“Thus far the private sector,โค whichโ has beenโ heavily impactedโข by a challenging economic habitat, hasn’t beenโ able toโ fill theโ gap created by reduced hiring elsewhere,” he said.
Related: โค Australia’s property market isโ seeing rising demand, with a rise โin both first home buyers and โคinvestors pushing up house prices.