Australian employers unexpectedly cut jobs in September, signaling record-low interest rates are yet to put the economy on a sustainable footing and offset a slump in mining investment.
Employment fell 5,100 from August compared with a median forecast of a 9,600 increase.
The jobless rate held at 6.2 percent, matching the median forecast.
Full-time jobs fell 13,900; part-time employment rose by 8,900
The participation rate, a measure of the labor force as a proportion of the population, fell to 64.9 percent from 65 percent in August and compared with a median forecast of 65 percent
The central bank cut its benchmark rate to a record-low 2 percent in May but investment by non-mining firms has so far failed to pick up leaving housing construction as one of the few bright spots in the economy.
â€œThe labor marketâ€™s resilience masks weak fundamental trends, which are likely to weigh on domestic demand in future,â€ Konstantinos Venetis, an economist at Lombard Street Research, said in a research note ahead of the release. â€œThe RBAâ€™s task is only going to get harder from here. Domestic and external macro headwinds are set to intensify, skewing the risks for real GDP growth to the downside.â€
The Australian dollar fell and traded at 73.11 U.S. cents at 11:34 a.m. in Sydney, from 73.40 cents before the data was released.