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Updates at 01:21 GMT with analyst comment
Investing.com-- Australia’s labor market expanded less than expected in September, but picked up sharply from the previous month as more people joined the workforce, while the unemployment rate climbed to its highest level since November 2021.
The total number of employed people rose by 14,900 in September, below expectations of a 20,500 rise, and reversed from 11,800 reductions recorded last month, data from the Australian Bureau of Statistics showed on Thursday.
The unemployment rate rose to 4.5% in September from a revised 4.3% in August. Hours worked rose 0.5% in the month, reflecting more people in full-time roles.
"This is the highest seasonally adjusted unemployment rate recorded since November 2021," said Sean Crick, ABS head of labor statistics.
The rise in unemployment reflects more people entering the labor market, the survey said. A rise in both males and females seeking work contributed to the rise in the number of unemployed people in September.
Full-time employment rose by 8,700, reversing from sharp declines of over 48,000 in August.
The data suggested that the labor market was gradually easing, which is supportive of rate cuts by the Reserve Bank of Australia.
"The marked loosening of the labour market last month bolsters the case for the RBA to cut rates by 25bp at its meeting in November. Even so, the decision will probably come down to the wire, given the Bank’s concerns about inflation persistence," Capital Economics analysts said in a note.
The RBA left its benchmark rate unchanged at 3.6% in late September and had flagged increased caution over inflation rising back to the upper range of the central bank’s target levels.