"Over 60,000 full-time jobs have been lost since the Abbott government was elected. What is the jobs plan of the Abbott government? What are they doing to stop the tens of thousands of jobs that are either going overseas or just disappearing?"
- Bill Shorten, opposition leader
The Australian Dollar plummeted against its U.S. counterpart on Thursday, pushed lower by disappointing figures from the Oz labour market, spurring investors to pare bets on the upcoming interest rate hike from the RBA. The Aussie posted its biggest drop in almost three weeks, with the AUD/USD pair falling 0.98% to 0.8937 shortly after the data became public.
The Australian Bureau of Statistics said the nation's labour market deteriorated further last month, as job opportunities were scarcer, while more people became unemployed, underscoring how fragile the economy is. The overall unemployment rate jumped to 6.0% in January, from 5.8% a month earlier, surprising markets to the downside, as analysts predicted a 5.9% figure. Moreover, the number of full-time jobs fell by 7,100 over the period, while part-time employment was not able to offset this decline even despite a 3,400 pickup. It is also important to mention that participation rate remained unchanged at 64.5%, suggesting some indicators are still resilient. The main reason for such a weak performance is the fact the mining sector switched from investment phase to a production period.
While the latest data is putting more pressure on the RBA, they are also posing a challenge for Tony Abbott, who pledged to restore confidence in the economy.
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