Employment growth slows, indication of an RBA move early next year

KPMG remains of the view that with the decline in inflation accelerating, and the expectation still that Australia’s labour market will weaken in the near term, the RBA will start to cut the cash rate from early next year.

Labour force survey data shows that while the unemployment rate has remained steady at 4.1 percent, the number of full-time jobs created last month (9,700) slowed to less than half of the average monthly full-time employment growth over the past year (19,800). This was less than expected, and the slowing of the labour market contributes to KPMG's view that the RBA will reduce rates in February. Overall employment grew by nearly 16,000 during October, while the number of unemployed also incr...

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Authors: Brendan Rynne

Published Date: 15 November 2024