Australia's Sept employment report disappoints, major decline in full time jobs

Australia's September employment report came at -9.8k vs 15k exp and -3.9k last, with full time job creation at -53k, while part time jobs came at 43.3k. The participation rate stood at 64.5% vs 64.8% exp, while the unemployment rate was 5.6% vs 5.7% last. The report is a major disappointment that will most likely keep the RBA very cautious in its approach. Should the Australian Q3 CPI read next week come weak, the case for a rate cut certainly increases.

SEPTEMBER KEY POINTS

TREND ESTIMATES (MONTHLY CHANGE)

• Employment increased 3,900 to 11,959,500.
• Unemployment decreased 3,100 to 715,100.
• Unemployment rate decreased by less than 0.1 pts to 5.6%.
• Participation rate decreased by less than 0.1 pts, but remained at 64.7% in rounded terms.
• Monthly hours worked in all jobs increased 2.2 million hours to 1,660.4 million hours.

SEASONALLY ADJUSTED ESTIMATES (MONTHLY CHANGE)

• Employment decreased 9,800 to 11,947,200. Full-time employment decreased 53,000 to 8,105,300 and part-time employment increased 43,200 to 3,841,900.
• Unemployment decreased 12,500 to 705,100. The number of unemployed persons looking for full-time work decreased 7,400 to 492,300 and the number of unemployed persons only looking for part-time work decreased 5,100 to 212,800.
• Unemployment rate decreased 0.1 pts to 5.6%.
• Participation rate decreased 0.2 pts to 64.5%.
• Monthly hours worked in all jobs increased 4.0 million hours to 1,660.0 million hours.