The RBA narrative of a tight labour market has been spoiled

November employment data disrupted the “rate hikes on the horizon” tone of much of the recent economic commentary.

A decrease of more than 50,000 in full-time employment was offset by a 35,000 increase in part-time employment, a small decrease in hours worked, and a decrease in participation; These are more evidence of a “soft” labor market than employers pausing, as if trying to figure out whether all the talk of rate hikes due to resurgent, government-backed inflation will happen.