Australian jobs report earlier today confirms there is plenty of slack in the economy

The Australian dollar has remained heavy, its barely off its lows for the session.

The Australian dollar has remained heavy, its barely off its lows for the session.

The data to hit it first were the jobs numbers for October:

Then the data from China didn’t do it any favours:

Some further comments on the employment report via BIS Oxford Economics:

  • “While the forward indicators aren’t suggesting that we’ll see sustained declines, it does indicate that slower growth in employment is likely to materialise over the near term; unsurprising, given the residential construction downturn and the ongoing weakness in the retail sector
  • The decline was matched against a rise in the unemployment rate – to 5.3% – and a fall in the participation rate – to 66% – indicating that slack in the labour force is now captured in both measures. And with the underemployment rate also rising, to 8.5%, the data clearly confirms that there is plenty of slack in the economy.”

(comments to Business Insider, bolding is mine) 

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