Investing.com - The latest Labour Force report, one of the most anticipated economic indicators, is set to be released at 11.30am AEST (1:30am GMT).
TD Securities has predicted a rebound in job growth to +35,000, surpassing the consensus estimate of 25,500. This follows the disappointing July jobs report that saw a decrease of 14,600 jobs. TD expects the participation rate to remain steady at 66.7%, with the surge in the working-age population likely maintaining the unemployment rate at 3.7%, the same as July's figure.
Despite TD's optimistic jobs forecast, they believe it may not be sufficient to prompt the Reserve Bank of Australia (RBA) to recommence its rate-hiking cycle. The bank is likely to wait for the third-quarter inflation report, due on October 25, for confirmation that inflation is gradually returning before taking action.
Farhan Badami, a market analyst at eToro, suggested that the federal government and the Reserve Bank may still be aiming for the unemployment rate to dip below 4% for a soft landing. However, economists are increasingly confident that maintaining the rate around 3.75% is sustainable, especially if inflation continues to slow without significant unemployment acting as the trigger.
St George Bank is expecting an employment gain of around 40,000 in August, which would offset the seasonal impact of school holidays in July. However, they also pointed out that forward indicators, including the number of job ads and applications per job, are indicating a slowdown in employment growth.