The Australian job market continues to show resilience as unemployment rose marginally to 4.0 per cent in December, up from 3.9 per cent in November, in what is bad news for borrowers.
According to the Australian Bureau of Statistics (ABS), employment increased by 56,000 people during December, while the number of unemployed persons grew by 10,000, contributing to the slight uptick in the unemployment rate.
Despite the minor increase in unemployment, the overall job market remains historically strong, with the 4.0 per cent rate still considered remarkably low by historical standards.
The sustained strength in the labour market suggests that any immediate interest rate relief may be unlikely, as the Reserve Bank of Australia typically looks for signs of significant labour market softening before considering rate cuts.
VanEck portfolio manager Cameron McCormack said the RBA wouldn’t be in a hurry to cut rates in response to the data.
“While unemployment has come in higher for December, it hasn’t reached a level where there is an urgency for the RBA to cut rates,” Mr McCormack told the Guardian.
ABS Head of Labour Statistics, Bjorn Jarvis, said employment growth remained strong.
“The number of employed people grew by 0.4 per cent in December 2024, slightly higher than the average monthly rise of 0.3 per cent during 2024,” Mr Jarvis said.
“The employment growth rate has outpaced population growth, with Mr Jarvis noting that the monthly employment increase was “higher than the average monthly population growth of 0.2 per cent over the year.
“The number of employed people grew by 0.4 per cent in December 2024, slightly higher than the average monthly rise of 0.3 per cent during 2024. It was also higher than the average monthly population growth of 0.2 per cent over the year.”
