PREVIOUS TRADING DAY EVENTS 19 Oct 2023

Employment data for Australia are showing that the labour market is losing steam. Underlying figures suggest vacancies are being filled and openings are declining. Employment change was reported just 6.7K from the expected 20.6K.

The participation rate, at 66.7 in September is at its lowest level since February, suggesting fewer people are looking for work. Had that not been the case, Australias jobless rate would have jumped last month as per economists statements.

If the participation rate had remained unchanged at 67 in September, rather than declining, then the unemployment rate would have risen to 3.9, said Diana Mousina, deputy chief economist at AMP Ltd.

Source

httpswww.bloomberg.comnewsarticles20231019australiasjobmarketshowssignsofcoolingasratehikesbite

The number of Americans filing new claims for unemployment benefits fell to a ninemonth low last week at 198K, indicating that the labour market remains tight. The data suggest that the Federal Reserve could keep interest rates higher for longer.

Companies on earnings calls may warn about the outlook and risks ahead, but they are still holding on tight to their workers as good help is increasingly hard to find, said Christopher Rupkey, chief economist at FWDBONDS in New York. The economy and labour markets are simply not slowing down and time will tell if this will reignite the inflation fires that until recently were looking contained.

The labour market is…