MNI BRIEF: Aussie Labour Market Tightens Over October

Australia’s unemployment rate fell 20 basis points to 4.3% in October, 10bp better than expected, as the economy added 42,000 jobs – double forecasts – the Australian Bureau of Statistics reported Thursday.

Full-time employment rose by 55,000, including 29,000 women and 26,000 men, while part-time employment declined by 13,000. The drop in part-time roles was driven by women, whose part-time employment fell by 21,000, partly offset by an 8,000 increase among men.

The participation rate was unchanged at 67.0% in October, with male participation up 0.2 percentage points to 71.0% and female participation down 0.2 points to 63.1%. The employment-to-population ratio held steady at 64.0%.

Total hours worked rose 0.5% in October, outpacing the 0.3% rise in employment, suggesting stronger labour utilisation. 

The Reserve Bank of Australia expects unemployment to reach 4.4% by December. (See MNI RBA WATCH: Bullock Strikes Cautious Tone Following Pause)