The participation rate,which measures those in work or looking for it,rose to a record high of 67.1 per cent.Credit:Louie Douvis
While the unemployment rate increased,the number of people holding down a job rose to a record 14.5 million. Of the 58,000 extra people in work through the month,48,200 were in NSW while another 26,300 positions were created in Victoria. Queensland shed 25,500 jobs.
The participation rate,which measures those in work or looking for it,rose to a record high of 67.1 per cent.
Before the release of the figures,financial markets put the chance of an interest rate cut at the RBA’s November meeting at 50-50. They now put the chance at one in three.
KPMG chief economist Brendan Rynne warned the strong employment data could reflect businesses clinging on to workers as long as they could.
“In weaker economic conditions,businesses often try to hold on to staff for as long as possible,given Australia’s industrial relations frameworks and the time and cost it takes to hire and then train good staff,” he said.
“It is also possible that the very high participation rate is being partly driven by people from squeezed households,seeing savings depleted and trying to get back into the workforce.”