Australia's unemployment rate climbed to 4.7%, marking its highest level in nearly five years. The unexpected downturn in the labor market also saw underemployment edge upward to 6.3%, rising from 6.2% the previous month.
According to data released by the Australian Bureau of Statistics, the national economy unexpectedly shed 39,300 jobs during September. The result contrasted sharply with economists' forecasts, which had anticipated an employment increase of approximately 20,000 positions.
KPMG chief economist Brendan Rynne noted that the figures indicate the domestic economy is losing momentum. Financial markets responded to the labor report by significantly reducing the probability of an interest rate hike by the Reserve Bank of Australia at its upcoming 3 November meeting to below 20%.