Shock fall in unemployment sees rate cut ‘delayed’

Shock fall in unemployment will see rate cut 'delayed' with Reserve Bank set to wait out strong labour market, economists warn

February's jump also saw the employment-to-population ratio and participation rate increase, with the labour market as a whole now sitting around the same level as it was between August and September last year. "Today's data does not change our view that the RBA has completed its tightening cycle as inflation in Australia is expected to continue fall towards the target band and the latest National Accounts show growth has slowed materially.

His view was echoed by George Washington University economist Steven Hamilton, who claimed Thursday's would be"very concerning" for the RBA as it weighed the timing of its first rate cut. However, Governor Michele Bullock also flagged the bank was"keeping a close eye" on employment data, although she declined to identify a rate at which she felt activity in the labour market would be consistent with her goal of reigning in inflation.

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