Australian employment surprisingly tumbled in December, snapping four straight months of gains, while unemployment remained unchanged as fewer people sought work.
The economy shed 65,100 roles versus a forecast 15,000 increase and the participation rate slid to 66.8% from 67.2% in November, Australian Bureau of Statistics data showed Thursday. Unemployment held at 3.9%.
The Australian dollar declined 0.2% after the release and swaps traders boosted bets on RBA rate cuts, pricing in about a 55% chance the central bank will lower borrowing costs in August. Stocks pared losses.
The figures highlight a gentle loosening of the labor market over the past year, reflecting the Reserve Bank's 4.25 percentage points of interest-rate hikes since May 2022 and strong population growth. Thursday's result, together with fourth-quarter inflation due in just under two weeks, will help shape the RBA's policy decision at its Feb. 5-6 meeting — the first of the year.
Source : Bloomberg
