Unemployment rate jumps to its highest level in four years

Australia’s dollar tanked and the sharemarket soared as investors predict a November interest rate cut.

Fresh Australian Bureau of Statistics figures show 34,000 Australians lost their job in September, while the number of people who gained work was 15,000.

Immediately following the Australian dollar dropped 0.5 per cent against the US to 64.85 US cents.

Meanwhile the three-year bond rate slipped 12 basis points to 3.36 per cent.

This means money markets are ramping up their bet that the RBA will cut interest rates when they next meet on Melbourne Cup day.

The surprising jump in unemployment came as the participation rate jumped to 67 per cent, meaning the number of jobs created did not match the number of potential employees.

The participation rate is now just below a record high of