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Australia's Labour Market Defies Expectations
Australia's employment data for November is strong, which may suppress the outlook for interest rate cuts before February.
The Australian labor market continues to withstand the pressures of economic weakness, and with another robust month of job growth, the unemployment rate significantly dropped to 3.9% in November, which may put an end to the increasing discussions about interest rate cuts in February. Economists had previously expected the unemployment rate to rise to 4.2%, consistent with recently shown data indicating the economy struggled in the third quarter. In the third quarter of this year, the economy grew only 0.8% year-on-year, marking the last time such a growth rate was recorded during the economic recession of the early 1990s. Nevertheless, the Australian Bureau of Statistics stated on Thursday that an additional 35,600 jobs were created in November.