Rate cut chances downgraded amid signs jobs market improving

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The Reserve Bank of Australia (RBA) has fresh evidence its plan to use interest rate cuts to drive down the jobless rate is working.

The Reserve Bank of Australia has fresh evidence its plan to use interest rate cuts to drive down the jobless rate is working, with the unemployment rate falling to its lowest level in nine months even as bushfires swept across the nation.

NSW and Victoria drove the result. In NSW, 20,600 jobs were created, of which 7400 were full-time, while in Victoria there were 10,400 new jobs, of which 3100 were full-time.Despite the lift in employment, Victoria's jobless rate rose by 0.3 percentage points to 4.9 per cent as more people started looking for work. NSW's unemployment rate edged down 0.1 percentage points to 4.5 per cent. Elsewhere, there were big falls in unemployment in Queensland , Tasmania and Western Australia .

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