Labour market report from Australia for November 2023 is another massive rise in jobs.
The 'participation rate' - i.e folks in the workforce or looking for work, also rose, which is most likely due to trying to cover the rising cost of living. This participation rise, to a record high, is behind the jump in the jobless rate despite the stoking number of jobs added.
Jobless rate is its highest since May of 2022, but still not to far from its nearly 50 year low of 3.5%
This is somewhat of a mixed bag. While the jobs added number is a huge beat and great news and points to a strong economy the fact that unemployment is ticking higher takes some of the gloss off the data. The RBA is going to have to weigh up the jobs added as a sign of strength, and the rising unemployment rate as a concern given its dual mandate. the RBA will, however, also see the higher unemployment rate as a slight easing in the tight labour market, which they'll welcome, thouhgh maybe not say out loud. On balance, I suspect that if inflation remains sticky and high the RBA will see a slightly higher unemployment rate as a price its willing to pay to keep attacking inflation with rate hikes.
The Bank next meets on February 5 and 6 and this report today keeps it a 'live meeting'. The next official quarterly inflation data is due on January 31.
