Key takeaways
More than 64,000 people found jobs in September, beating economists’ forecasts for gains of 25,000 jobs.
The jobless rate remained unchanged at 4.1 per cent last month, even as the participation rate hit a record high of 67.2 per cent.
This means it's likely we won't see rate cuts this side of Christmas.
More than 64,000 people found jobs in September, beating economists’ forecasts for gains of 25,000 jobs.
The jump helped to keep the jobless rate unchanged at a revised down 4.1 per cent last month, even as the participation rate – the share of working-age people either with a job or looking for one – hit a record high of 67.2 per cent.
This means Australia has one of the strongest jobs markets in the developed world after employment growth hit a 16-month high and the rate of workforce participation reached a record.
What this means for interest rates
All this means it's likely we won't see rate cuts this side of Christmas.
RBA governor Michele Bullock has cited the enduring strength of the jobs market as one reason the central bank is not expecting to cut the cash rate this year; even as other central banks are doing so.
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The “money market” which speculates on where interest rates are going now says there’s only a one in three chance of a cut in December.
Before these job stats, they were forecasting a 50% chance of a rate cut this year.
However, they now see three cuts next year taking the cash rate to 3.7% by December 2025.
