Australia: Unemployment rate plunges in December
Seasonally-adjusted employment increased by 64,800 in December, following 366,100 jobs shred in November. December’s result was driven by an increase in both part-time and full-time employment.
Meanwhile, the seasonally-adjusted unemployment rate fell to 4.2% in December, from November’s 4.6%. Moreover, the seasonally-adjusted underemployment rate plunged from 7.5% in November to 6.6% in December. Meanwhile, the participation rate remained unchanged at November’s 66.1% in December.
Commenting on the release, Robert Carnell, Asia-Pacific regional head of research at ING, stated:
“The steep fall in the unemployment rate could be a factor for the Reserve Bank of Australia (RBA) to consider when it mulls its monetary policy options this year. However, until they see evidence of higher inflation or wage acceleration, we don’t expect them to change their dovish message on rates.”