Jobs in Australia fell in October, while unemployment rose in Reuters

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Author: Wayne Cole
SYDNEY (Reuters) – Australian employment fell in October and the unemployment rate rose as the coronavirus blockade continued to plague the labor market, despite all signs that the economy is reopening rapidly.
Data from the Australian Bureau of Statistics (ABS) on Thursday showed that employment fell by 46,300 in October, beating analysts ’forecasts of more than 50,000.
The unemployment rate rose to 5.2%, from 4.6%, well above the expected 4.8%, and participation rose less than expected to 64.7%, many of whom are still unable to find work.
The surprise had a lot to do with the easing of restrictions in New South Wales from 26 September to 9 October and the state of Victoria was still blocked with an employment survey.
As a result, while employment rose 22,000 in NSW, Victorian fell 50,000 and the national result fell. Other labor market indicators have been much stronger as restrictions on staying at home have been steadily removed.
“The rise in the unemployment rate confirms that there will be frictional unemployment in the coming months,” said Sarah Hunter, Australia’s Chief Economist at BIS Oxford Economics.
“But because vacancies are still at record levels, this fall should be largely temporary.”
The soft report lowered the local dollar by 20 ticks to $ 0.7322 and slightly reduced the market’s commitment to the Australian Reserve Bank’s (RBA) initial interest rate hike.
Futures saw a first rise of 0.25% in June and rates of at least 0.75% by the end of next year, although the central bank said the move in 2022 is “very difficult”.
RESPONSIBLE FOR SALARIES
According to company surveys, labor demand has been strong over the past month, and a survey of consumers this week showed that unemployment concerns were the lowest since the mid-1990s.
The SEEK online workplace saw a 10% jump in ads in October, and put up a whopping 54% of where they were in December 2019 before the pandemic hit.
The number of applications for each job was almost 49% below the previous level of the pandemic, an indicator of the tightness of the labor market, as international migration has not yet resumed.
Although this imbalance created pay-as-you-go bags, there was still no indication of the fairly wide rise that policy makers would have.
Key data on third-quarter wages are needed on Nov. 17 and any unforeseen circumstances would support the reason for the policy to start tightening sooner.
Analysts expect annual wage growth to be around 2.1%, up from 1.7% in the second quarter, but fall far short of the 3% level the RBA is looking for.
The central bank says that further progress will be slow given that the last time wages grew by 3% or more was in early 2013 and shows a reluctance to pay more relationships with companies.
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