Chanticleer
Jobs data and big-spending governments mean RBA can’t follow Fed
The labour market is softening only at a glacial pace, thanks in no small part to strong public sector jobs growth. That leaves the RBA in a bind.
On the day that the US central bank cut interest rates for the first time in four years, it was fitting the latest jobs and population data confirmed Australia’s central bank is some way from following suit.
Official data from the Australian Bureau of Statistics showed 47,500 more people found work in August, compared with expectations of 26,000. It was further confirmation of the Reserve Bank of Australia’s view that the jobs market is cooling only very gradually from its peak; employment growth rose to 2.7 per cent in the year to September, which is faster than the 2.4 per cent growth rate than we saw in the June quarter (on revised numbers).
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