Shock drop in unemployment rate to lowest level since March
Unemployment has fallen to its lowest level since March, surprising economists and once again denting hopes of an earlier-than-expected interest rate cut.
The jobless rate for November fell to 3.9 per cent, according to new data from the Australian Bureau of Statistics, far better than the rise to 4.2 per cent the market had been forecasting.
While positive news for the roughly 36,000 people who found work last month, the drop is likely to keep the Reserve Bank from cutting interest rates in February.
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Unemployment has recorded a shock drop back below 4 per cent. Nikki Short / The Sydney Morning Herald
The market had been somewhat optimistic about an early-2025 rate cut on the back of RBA Governor Michele Bullock's relatively doveish comments about inflation earlier this week.
But the surprise jobs figures appear to have put paid to that.
"(It) supports our expectation that the RBA will keep rates on hold until at least May," Sean Langcake from Oxford Economics Australia said.
"The RBA board will be reluctant to ease rates while underlying inflation is above target, and the labour market is operating so close to its capacity."
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