Australia's Strong Job Growth Complicates Path for Further Interest Rate Cuts

The Reserve Bank of Australia weighs strong employment figures against inflation concerns as the government highlights cost-of-living relief efforts.

Australia added 54,000 full-time jobs in January, contributing to nearly 500,000 new jobs over the past year, with a record-high participation rate of 67.3%.
The unemployment rate rose slightly to 4.1%, partly due to a higher number of people waiting to start work, suggesting the rate may decline soon.
The Reserve Bank of Australia recently cut interest rates by 0.25%, citing concerns that inflation could fall below its target range without intervention.
Wage growth slowed to its lowest rate in nearly three years, with annual growth dropping from 4.2% to 3.2%, easing inflationary pressures despite strong employment figures.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers emphasized the government's focus on cost-of-living relief, signaling potential new measures in the upcoming federal election campaign.