Data published by the Australian Bureau of Statistics (ABS) showed that the economy lost 65,100 jobs in December after adding 72,600 jobs in November (revised from +61,500). Economists had expected an increase in the number of employed by 17,200. The ABS said that the number of full-time jobs decreased by 106,600, offsetting the November increase (+57,000). The unemployment rate remained at an 18-month high (3.9%), while the participation rate fell to 66.8% from 67.2% (a record high). Overall, the latest data confirms the fact that interest rates have peaked as the red-hot labor market cools. So far, the labor market has developed mainly in line with the Reserve Bank of Australia's forecast - the labor market has remained strong, while a sharp increase in migration has helped increase the supply of labor and curb wage inflation. The next RBA meeting will be held on February 6, and markets have wagered heavily on a hold.
The report also showed that in the 4th quarter, employment increased by 52,000 q/q, by about 17,000 per month, which was not enough to absorb the increased labor supply as migration increased. Meanwhile, in December, the number of hours worked rose by 1.2% per annum after an increase of 1.5% in November, while the underemployment rate remained unchanged (6.5%).