August jobs data no 'smoking gun' for RBA cash rate cut: CommSec's Craig James
The unemployment rate eased from 5.2% to 5.1% in August as the participation rate eased from 65.2% to 65%, the latest ABS figures show.
In terms of actual job numbers, the number of people employed fell by 8,800 in August well below expectations of a 5,000 gain and following a revised gain of 11,700 jobs in July (down from 14,000+).
CommSec chief economist Craig James says the Reserve Bank must stand poised to cut rates as necessary, but he says the latest jobs data "is no smoking gun" for a cash rate cut.
"The job market has softened, but not dramatically. In fact for those in NSW, the jobs data is quite encouraging. Employment [in NSW] rose by 13,300, while the [state's] jobless rate fell to 4.8%.
The unemployment figures in the other states are: Victoria 5.6% (5.4% in July); Queensland 5.9% (5.8%); South Australia 5.7% (5.4%); Western Australia 3.9% (3.7%); Tasmania 6.8% (6.5%); Northern Territory 4.2% (4.2%); ACT 3.6% (3.6%).
