Employment growth was much stronger than expected over Q3, surging 1.2% QoQ. This was accompanied by a strong liftin the participation rate and as a result the unemployment rate edged lower to 6.2% from 6.4% (largely in line withexpectations). We had expected a decent lift in both employment and participation, although not to the extent that the datashowed. A rising participation rate is likely to slow the decline in the unemployment rate over the coming year as peoplereturn to the workforce. Reduced net migration outflows to Australia will also play a part in a higher participation rate.
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Commonwealth Bank