We wouldn’t read too much into October’s largest fall in employment in three years as the monthly data are volatile. But we still expect the unemployment rate to rise in the coming months as the participation rate picks up and employment growth continues to slow. That will keep wage growth and inflation under wraps. The upshot is that the RBA will probably cut rates again in February to 0.5%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services