SYDNEY (Reuters) -Australian employment sped past forecasts in December thanks to a surge in part-time jobs, though the jobless rate ticked higher as more people went looking for work.
Figures from the Australian Bureau of Statistics showed net employment jumped 56,300 in December from November, when it increased by a downwardly revised 28,200. That was well above market forecasts for a rise of 15,000. Annual jobs growth accelerated to a brisk 3.1%.
The jobless rate rose to 4.0% from 3.9%, matching market expectations. The participation rate edged up to a record high of 67.1% from 67.0%.
Overall, the data suggests the strength in labour demand has been met by the rapid rise in the labour force, a sign of a healthy job market.
The Australian dollar rose 0.1% to $0.6230. Three-year bond futures trimmed earlier gains but were still up 10 ticks to 96.06 thanks to tame inflation figures overseas.
Swaps still imply a 68% probability that the RBA will cut rates on Feb. 18, following the quarterly inflation report and another reading on retail sales.
The RBA has held its policy steady for a year, judging that the current cash rate of 4.35% – up from 0.1% during the pandemic – is restrictive enough to bring inflation to its target band of 2-3% while preserving employment gains.
Monthly inflation figures for October and November point to some welcome progress in bringing down underlying inflation last quarter, while the pick-up in consumer spending has been disappointing even with the government’s tax cuts.
Part-time jobs jumped 80,000 in December, while hours worked rose a strong 0.5%. Job ads steadied in recent months after sharp declines, but wage growth has been underwhelming, suggesting the job market is not a source of inflationary pressures.
(Reporting by Stella Qiu and Wayne Cole; Editing by Himani Sarkar and Edwina Gibbs)
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