Australia’s Job Market Loses Some Pep in October
Unemployment rate remained at 4.1% for a third month in a row
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SYDNEY—Australia’s job market showed signs of cooling down in October as employment growth for the month came in a little bit below expectations, albeit the jobless rate remained near its historic lows.
The economy churned out 15,900 new jobs in October, about 10,000 fewer than economists had expected, and well short of the spectacular gains seen in recent months, the Australian Bureau of Statistics said Thursday.
Still, the unemployment rate remained at 4.1% for a third month in a row in October, continuing to track below where the Reserve Bank of Australia has forecast it would be.
With employment growth slowing over the month, October might mark the start of a slowdown in hiring, which many economists have been expecting given that interest rates remain elevated and the economy overall has been sluggish.
The conditions for a cut in official interest rates early in 2025 appear to be slowly falling into place with inflation in a steady retreat and the job market now showing tentative signs of slowing down, economists said.
Still, money market traders are less optimistic than economists about the potential for a cut in interest rates, with swap markets not fully pricing in an interest rate cut until August next year.
The October unemployment rate remained 0.6 percentage points above its recent low of 3.5% in June 2023, while being 1.1 percentage points below its level just prior to the pandemic, the ABS said.
The number of unemployed people in October was 67,000 higher than a year ago, but was still 82,000 people lower than in March 2020, the ABS added.
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Australian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market. The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index. …
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2 minAustralian shares fell on Thursday as Wall Street weakness, rising oil and persistent rate concerns weighed on most of the market.
The S&P/ASX 200 declined 0.72 per cent to 8,702. The All Ordinaries lost 0.66 per cent to finish at 8,897. Mining stocks were hit particularly hard, while real estate also dragged on the index.
Energy was the notable exception, gaining more than one per cent as Brent crude traded above US$103 a barrel. Oil had moved higher amid uncertainty surrounding potential US diesel-export restrictions and broader geopolitical supply risks. The move supported energy producers but renewed concern about inflation inputs across transport and the wider economy.
Gold shares were weak even as spot bullion remained historically elevated. The All Ordinaries Gold index fell about 2.25 per cent, showing that equity performance can diverge from the commodity because of valuation, currency, operating and company-specific factors.
Zip was a prominent loser, falling 11.38 per cent after the company reported short sales after the previous close. Nine Entertainment also weakened after UBS analysts warned of near-term revenue challenges associated with its advertising-supported subscription tier.
Premier Investments led larger winners despite caution about the retail environment. Breville, in which Premier owns a significant stake, also appeared among leading movers. In the broader ASX 300 screen, Myer gained 11.43 per cent and MAAS Group rose 7.93 per cent, while Lotus Resources fell 10.53 per cent. These percentage moves should be checked against company announcements and trading liquidity before attributing causes.
The Australian dollar was broadly flat at US70.38 cents. Spot gold was around US$4,280 an ounce, Brent crude approximately US$103.08 a barrel and iron ore near US$96.90 a tonne late in the session.
The rate outlook remains the central domestic catalyst. Labour-market weakness has not eliminated the possibility of an RBA increase next week, leaving banks, listed property and other rate-sensitive sectors exposed to changing expectations.
Market dashboard
S&P/ASX 200: 8,702, down 0.72 per cent.
All Ordinaries: 8,897, down 0.66 per cent.
Best sector: Energy, up more than one per cent.
Weakest areas: Real estate and materials were the major drags; confirm final sector percentages before publication.
Material winner: Premier Investments led the large-company gainers. Confirm its final closing move from the ASX before publication.
Material loser: Zip, down 11.38 per cent.
ASX 300 percentage leader: Myer, up 11.43 per cent.
ASX 300 percentage laggard: Zip, down 11.38 per cent.
AUD/USD: Approximately US$0.7038, broadly flat.
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