Australia has seen its jobless rate fall to its lowest level in 33 years in September, official data shows, raising chances of an interest rate rise. Employers created 13,000 new jobs for the month, sending the unemployment rate down to 4.2% from 4.3%.
The job rise was lower than forecast but came after August’s figures were revised significantly up by 34,300.

The government raised interest rates to their highest in 10 years in August, at 6.5%, in a bid to contain inflation.

Tightening bias

“The key is that the unemployment rate fell to a new low - that’s the best indicator of the health of the labour market ” said economist Su-Li Ong with RBC Capital Markets. “This outcome will keep the central bank wary and will only reinforce their tightening bias.” Analysts are now looking towards the Consumer Price Index (CPI) figures due on October 24.
“If we get a relatively high CPI result, then a [rate] hike could be on.”