Australia’s unemployment rate jumped to 3.9% despite the addition of over 60,000 jobs last month, according to data released ahead of the December 2023 Job Report. The surge in the participation rate to a new record high of 67.2% indicates that more Australians aged 15 and over are either employed or actively seeking work, compared to 67% in October.
Aussie gains on strong jobs report after Fed’s dovish message
The increase in the participation rate resulted in the jobless rate ticking up from 3.8%, as the estimated 61,500 new jobs created in November were insufficient to maintain the previous unemployment rate.
Although the jobless rate rose to 3.9% in November, the highest since April 2022, investors will likely prefer to focus on the surge in new hires. The Australian economy added 63,500 jobs, which means the labour market remains pretty tight.
Bjorn Jarvis Source: LinkedIn
Bjorn Jarvis, ABS head of labour statistics, noted:
The combination of strong growth in both employment and unemployment in November saw the employment-to-population ratio return to a record high of 64.6% and the participation rate reach a new high of 67.2%.
The Australian dollar rose 0.6% against the dollar to hit a fresh 4-month high. Before the jobs report accelerated gains, the AUD initially rose against the greenback on the US Federal Reserve’s dovish message. Elsewhere, the Aussie rose to a fresh 25-week high against the British Pound. Stocks were up about 1.5%.
Don’t miss out on the latest news, subscribe to LeapRate’s newsletter
The mid-year economic and fiscal outlook report released recently indicates that the Treasury expects the jobless rate to be approximately 4.25% by June of the following year. A year later, it is anticipated to rise to 4.5%.
