Reactions from analysts around the place on today's jobs report

ANZ calling for 2 25 bp cuts from the RBA in H1 of 2016

  • Jobs growth focused in labour-intensive services sector is expected to wane
  • Less support from housing activity and the lower currency
  • Unemployment rate stuck above 6% would ultimately prove to be too uncomfortable for the RBA

JPMorgan

  • 'Healthier skew' of labour market news" from other labour force indicators like the NAB conditions/confidence survey, ANZ job ads and more
  • RBA has struck a more neutral tone in commentary in recent months
  • Dovish forces on monetary policy are not coming from domestic economy drags, but from external (China) and financial (currency and mortgage spreads)

RBC Sydney:

  • Says the market is treating the employment report "with a bit of skepticism"
  • Thinks next year employment growth will slow down ... unemployment .. up to 6.5%

TD Securities

  • Today's report won't influence the RBA to cut in November
  • RBA will see decent annual employment growth of 2.0% on the year
  • And unemployment rate unchanged at 6.2%
  • "Everything else is just noise"
  • expects 12,000 new jobs headline for next month's report

UBS

  • Trend better than many forecast
  • Mentions also the 2 per cent y/y jobs growth pace and steady unemployment rate
  • Hours-worked growth rose to a 4-year high, consistent with the drop in job insecurity and jump in hiring intentions seen this week
  • Better trends reflect rebalancing toward more labour intensive non-mining sectors
  • Little here to suggest the economy needs a lower cash rate
  • UBS does not discount the macro headwinds still in play
  • mentions higher mortgage rates announced by Westpac ... "add some negative risk to the outlook"