Jobs, Jobs, Jobs, Means More Rate Hikes Incoming!

Mortgage Holders should brace for more hikes in the cash rate this year as today we got the latest data from the ABS relating to the Labour market, though perhaps savers can rejoice! There was no change in the seasonally adjusted unemployment rate which remained at 4.1 per cent in January, while the trend measure fell from 4.2% to 4.1%. The latest data showed about 18,000 people found work in December, slightly undershooting the gain of 20,000 economists had expected. This is because full-time employment rose by 50,000 people, which partly offset by a fall of 33,000 people in part-time employment. The participation rate of 66.7 per cent was 0.6 percentage points lower than the record high measured in January 2025. The underemployment rate rose 0.2 percentage points to 5.9 per cent in January. The underutilisation rate also grew by 0.2 percentage points to 10.0 per cent. Across the states Tasmania had the highest unemployment rate at 4.9%, followed by the NT at 4.5%, Queensland at 4.3%, Victoria at 4.2%, the ACT at 4.1%, and NSW also at 4.1%. South Australia was at 3.7% and Western Australia at 3.4%, so significant variations. Given the RBA hiked rates last months and discussed the tightness in the economy, the 4.1% is a signal that we should expect more rate rises in the months ahead. So the inflation data for the month of January, which comes out next Wednesday, will be more critical for the RBA’s decision making than ever. The recent statement on monetary policy last updated this month shows it expects the unemployment rate to move higher to settle at about 4.6 per cent by mid-2028. While Australia has struggled to bring inflation back under control, unemployment has remained very low by historic standards. Governor Bullock said the RBA estimates full employment — or the NAIRU — at 4.6%. Higher inflation of course is being driven by demand in the economy exceeding the ability of the economy to deliver, despite, or perhaps partly thanks to record high Government spending. http://www.martinnorth.com/ Details of our one to one service are here: https://digitalfinanceanalytics.com/blog/dfa-one-to-one/ Go to the Walk The World Universe at https://walktheworld.com.au/ Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts Please consider supporting our work via Patreon: https://www.patreon.com/DigitalFinanceAnalytics The full detailed set of post code data is available as a subscription service. Or make a one-off contribution to help cover our costs via PayPal at: https://www.paypal.me/MartinDFA We also can receive bitcoins at: 13zBL1oRib9VJu8Uc9zUGNhxKDBBgUpDN1 Please share this post to help to spread the word about the state of things.... Caveat Emptor! Note: this is NOT financial or property advice!! 🚨BEWARE OF SCAMMERS🚨 As there are accounts impersonating Walk The World in the comments on YouTube, note that our comments will have a distinguishable verified symbol. And remember that we will never message you asking you to give us money or talk to us on other platforms such as WhatsApp or Telegram