Australia: Employment fell -9.8k in Sept - TDS

Research Team at TDS, notes that the Australia’s employment fell -9.8k in Sept, defying widespread expectations for a far more solid print, and annual employment growth of 1.4%/yr falls below the 1.8-2%/yr implied by all the leading indicators.

Key Quotes

“The plummet in the participation rate (from 64.7% to 64.5%) is the sole driver behind the “fall” in the unemployment rate to 5.6%, the lowest since mid-2013. The RBA will rightly look through these noisy figures, preferring to focus on liaison to gauge the health of the labour market. The Bank is already of the view that the labour market is ‘mixed’ and nothing changes after today’s report, but the subsequent AUD fall will be welcomed."