<\/p>\n
Treasurer Jim Chalmers said unemployment remained low and participation high. Picture: Nigel Hallett<\/p>\n
ANALYSIS<\/p>\n
A shock jump in unemployment suggests that all that job cutting the major banks have been doing might now be filtering through to the economy.<\/p>\n
And the worst part for the banks? Their lay-offs may be paving the way to a rate cut.<\/p>\n
September data released by the Australian Bureau of Statistics (ABS) showed the nation\u2019s seasonally adjusted unemployment rate rose a whopping 0.2 per cent from the revised August figure to now sit at 4.5 per cent.<\/p>\n
That\u2019s the highest level it has been since the Covid lockdown aftermath, according to Sean Crick, ABS head of labour statistics.<\/p>\n
\u201cThis is the highest seasonally adjusted unemployment rate recorded since November 2021,\u201d Crick said.<\/p>\n
\u201cThere were 34,000 more unemployed people in September. The number of employed people also grew, up 15,000 in the same period.\u201d<\/p>\n
MORE:Expert predicts pre-Christmas rate cut<\/a><\/p>\n Recent data from ANZ and employment group Indeed also found the number of job ads fell by 0.3 per cent in September from August, the steepest decline since February 2024. Ads in September were also down 4.3 per cent on the same month last year.<\/p>\n \u201cJob ads have now declined for three consecutive months after holding broadly steady for over a year, suggesting labour market conditions are beginning to ease,\u201d said ANZ economist Aaron Luk.<\/p>\n Unemployment is a key factor that the RBA monitors closely when considering rate movements.<\/p>\n Unemployment is monitored by the RBA when it considers rate movements. Picture: Martin Ollman<\/p>\n And while the August figure of 4.2 per cent (revised to 4.3 per cent) was not enough to spark the central bank into action, there was a lot going on at the time. Especially in the banking sector.<\/p>\n<\/p>\n