The bulk in the +55K gain in jobs was part-time, which will take some of the heat out the headline.

Nevertheless it points to still strong demand for labour and keeps wage pressures on the simmer.

  • Unemployment rate 3.7% as expected, despite a higher participation rate

It won't be long until thoughts turn to this number hinting at the Reserve Bank of Australia December 5 meeting being live. One of only two RBA mandates is price stability and with inflation still so high and real rates negative a case can be made for a further rate hike (or hikes). I suspect the Australian economy is gong to sharply weaken in early 2024 so that might give the RBA some breathing room while they wait for hikes already in the system to more fully play out. Or, at least, for the Board to make that argument.

Australian labour market report October 2023 1