Aussie employment surprisingly falls in September, stirs rate risk

Sydney

AUSTRALIAN employment unexpectedly fell 9,800 in September as firms shed a huge 53,000 full-time jobs, a disappointing report that slugged the local dollar and could rekindle speculation of further rate cuts.

Thursday's data from the Australian Bureau of Statistics showed the unemployment rate stayed at a three-year trough of 5.6 per cent, but only because more people stopped looking for work. Indeed, the participation rate dropped to its lowest since May 2014 at 65.5 per cent.