Boosting Cases for More Rate for Jobs in Australia Are Beating All the Forecasts

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The jobless rate has been steadily declining, and employment has been increasing, which is excellent news for the economy. This news for Australia strengthens the case for more rate hikes. 

This will help to boost growth and support the current recovery. It is also a sign that the economy is doing better than expected, and businesses are becoming more optimistic about hiring.

The Australian Bureau of Statistics report showed that on Thursday, net employment rose 32,200 in October from September, when they fell a revised 3,800. It indicates that the labour market continues to strengthen, which is good news for Australian workers.

Gareth Aird, head of Australian economics at CBA, said, “Australia is not facing a wage-price spiral like has been observed in other jurisdictions.”

“We are confident that we are past the peak tightness in the labour market,” he added,

The full-time employment rate rose to 47,100, resulting in the total job gains for the 12 months to October to a massive figure of 762,000. This represents that the economy is doing well and that businesses are confident about hiring more workers.

The Reserve Bank of Australia (RBA) is likely to pause its policy tightening in December after the latest jobs data showed that the labour market continues to strengthen.

The RBA sees unemployment rising only slightly to 3.7% by the end of next year while forecasting inflation at 4.7% and still well above its long-term target band of 2-3%.

Reports claim that wages are increasing at a healthy rate. However, they are still well below the levels that would threaten inflation. The RBA is likely to continue raising rates to keep inflation under control.

All in all, the latest job data is good news for Australia. It shows that businesses are doing well and the economy is strengthening. This will help to boost growth and support further rate hikes shortly.

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