On Thursday morning, the Australian Bureau of Statistics released the labor market data for the country for December, which came in higher than market expectations. The economy created more jobs than anticipated, and despite the rise in the unemployment rate, it was in line with expectations.
According to the data, Australia’s economy added 56.3 thousand jobs in December, significantly higher than the market forecasts which estimated an addition of only about 14.5 thousand jobs. The previous reading for November showed that Australia's economy added approximately 28.2 thousand jobs, having been revised down from 35.6 thousand jobs.
On the other hand, the unemployment rate data in Australia matched expectations in December, as the unemployment rate rose to 4.0%. The December reading aligned with expectations that forecasted an increase in the unemployment rate to the same percentage, after the index recorded a drop to 3.9% in November.
The indicator of employment change in Australia is one of the measures of consumer spending within the country, as it illustrates the overall performance of economic activity in Australia. A reading exceeding expectations is believed to have a positive impact on the Australian dollar, while a reading below market expectations indicates a likelihood of a weaker Australian dollar. In this case, the impact is considered mixed and neutral on the movement of the Australian dollar.
