Another employment growth figure of close to 50,000 (47,500) in August should dispel thoughts of imminent easing from the Reserve Bank of Australia (RBA). Until recently, there was an odd kink in the implied cash rate curve at the September meeting, indicating that some investors still believed the RBA would follow the Fed lower this month. This has now disappeared.
Still, for the doves, this latest labour report contains some suggestions of weakness that they may want to cling to.
Despite the strong headline employment growth number, the increase all came from the part-time sector. These jobs, which are almost by definition more poorly paid, and often come with lower job security, perks and other benefits, will have a smaller impact, job-for-job, on household spending than full-time employment growth. Full-time jobs actually fell by 3,100 in August. While part-time jobs grew by 50,600.
