SYDNEY, Nov 16 Reuters Australia employment rebounded strongly in October, after a soft patch the previous month, though the jobless rate still ticked higher as more people went looking for work and rapid migration boosted the supply of labour.

Figures from the Australian Bureau of Statistics on Thursday showed net employment rose 55,000 in October from September, more than double market forecasts of 20,000.

The breakdown showed parttime jobs surged 37,900, which could have been boosted by staff hired for a national referendum that was conducted on Oct. 14.

The jobless rate edged up to 3.7, matching forecasts and largely due to a jump in the participation rate back to an alltime peak of 67.

Record inflows of migrants and students have boosted the supply of labour to meet demand, so while employment was solid at 55,000 the labour force expanded by an even bigger 83,000.

Over the year to October, jobs growth of a healthy 2.8 was still not enough to match labour force growth of 3.8.

This expansion of supply means the labour market is not the main driver of inflation and markets see little reason for the Reserve Bank of Australia RBA to deliver a followup rate hike in December.

The central bank last week lifted rates to a 12year high of 4.35 and left the door open to another move. Yet futures imply only a 7 chance of a rise in December, and are evenly split on whether the tightening cycle is over for good.

The labour data hinted at some loosening in the market, with…