Australia's employment rate unexpectedly fell in February

Australian employment unexpectedly declined in February, halting months of growth. This suggests that the country's overheated labor market is stabilizing, Reuters reports.

According to data from the Australian Bureau of Statistics, employment in the country fell by 52,800 people during the mentioned period. In January, the figure had risen by 30,500 jobs.

Annual job growth declined sharply from 3.5% in January to 1.9% in February. The participation rate also dropped from 67.2% to 66.8% during the same period. However, the unemployment rate remained steady at 4.1%, Reuters notes.

Meanwhile, in February, the Reserve Bank of Australia (RBA) cut interest rates for the first time in four years. However, bank officials cautioned that further easing is not guaranteed, as the country's strong labor market could fuel inflation.

The RBA projects that Australia's core consumer price index will reach 2.7% by the end of 2025, exceeding the central bank's target range of 2–3%.