CommSec
19 November 2018
What does the jobs report mean for investors?
CommSec
The jobs report is one of many economic updates issued by the Australia Bureau of Statistics (ABS). It provides a monthly snapshot of the state of the job market in Australia.
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What’s in the report?
The report contains a range of data. Here are the key things to look out for:
- How many jobs were added or lost during the past month
- Full-time vs part time jobs
- The unemployment rate
- Number of hours worked
- Participation rate (the percentage of people older than 15 who are working or looking for
Why is it important?
- Stronger jobs growth means wages are more likely to grow too.
- The more people who have jobs, the more likely they are to spend money (shopping, eating out, buying property, and travelling) which can impact companies on the share market.
- A strong labour market is a sign of confidence. If businesses are hiring people, it shows they are optimistic about the future.
How does it affect investors?
The jobs report doesn’t typically have an immediate impact on the sharemarket but it can at times have an impact on the value of the Australian dollar. A positive result in the jobs report makes a lift in the AUD more likely, while a disappointing result can push the AUD lower.
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Important Information
This information is directed and available to and for the benefit of Australian residents only and is not a recommendation or forecast.
This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned, but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 ("the Bank") and both entities are incorporated in Australia with limited liability.