Australia's unemployment rate has dropped, with the number of employed people increasing far beyond expectations.

Australia's unemployment rate fell in October, with the number of new jobs exceeding expectations, indicating that the labor market remains tight and also proving the correctness of the decision by the Reserve Bank of Australia to keep interest rates unchanged last week. Data released by the Australian Bureau of Statistics on Thursday showed the October unemployment rate at 4.3%, lower than September's 4.5% and better than economists' expectations of 4.4%. Employment increased by 42,200 people, all in full-time positions, more than double the economists' estimated increase of 20,000. The Australian dollar exchange rate and the yield on sensitive 3-year government bonds both rose, with market expectations for a rate cut before the end of June next year falling from 74% before the data release to less than 50%. Stock market losses widened. The central bank kept borrowing costs unchanged at 3.6% on November 4, highlighting concerns about sustained inflation pressure. After three interest rate cuts this year, Governor Michelle Bullock hinted that further monetary policy easing is unlikely in the short term.