(Australia) West leads jobs boom
AUSTRALIA'S jobless rate fell to a seasonally adjusted 4.5 per cent in March to a 30-year low and plunged to just 2.7 per cent in Western Australia, reflecting the commodities boom.
The unemployment rate dropped from 4.6 per cent in February, the Australian Bureau of Statistics said today.
Total employment rose 10,500 to 10.370 million, seasonally adjusted, while full-time employment rose by 31,700 to 7.4 million and part-time employment fell 21,200 to 2.9 million.
The report follows a long run of data that suggests last year's three interest rates have not dampened activity in the economy, leaving open the risk of renewed inflationary wages and price pressures.
WA leads jobless rateAmong the states, the unemployment rate plunged to 2.7 per cent in Western Australia from 3.1 per cent. The state has led the nation's resources boom and the mining sector there has a particularly tight labour market.
The New South Wales unemployment rate fell to 5.0 per cent in March, compared with 5.2 per cent in February, while in Victoria it rose to 4.9 per cent from 4.8 per cent. The jobless rate fell to 5.3 per cent in Tasmania from 5.6 per cent. In Queensland the jobless rate remained at 4.0 per cent, but rose to 5.3 per cent from 5.2 per cent in South Australia. In the Northern Territory the jobless rate rose to 3.4 per cent from 3.0 per cent, while in the ACT it remained at 3.2 per cent.
Vacancies harder to fillThe managing director of recruitment firm Michael Page International Phillip Guest said jobs in the accounting, finance, non-building engineering, metal trades and nursing sectors were becoming harder to fill. A strong economy was also pushing jobs growth. “Generally speaking, that is backed up by the commodity boom that's going on and strong global economic conditions. “That's driving the strength of our economy, consumer and business confidence are up.''
More pressure on interest rates RBC Capital Markets senior economist Su-Lin Ong said the slightly lower unemployment rate would put pressure on interest rates. “Today's labour market data continue to highlight the very stretched nature of the economy with constraints evident in both goods and labour markets," she said. The data would make the Reserve Bank of Australia more likely to keep its tightening bias and raise interest rates. “It keeps alive the prospect of further tightening in the coming months. If there is a single indicator that flags such a move it is the downward trend in the unemployment rate,'' she said.
UBS senior economist Adam Carr said leading indicators of employment pointed to continued jobs growth in the short-term. Mr Carr said inflation data due on April 24 would need to be particularly soft or for there be a solid deterioration in the US economy to prevent an interest rate hike next month. "In the absence of either of those events, we think it likely the bank will tighten again in May,'' he said.
The unemployment rate dropped from 4.6 per cent in February, the Australian Bureau of Statistics said today.
Total employment rose 10,500 to 10.370 million, seasonally adjusted, while full-time employment rose by 31,700 to 7.4 million and part-time employment fell 21,200 to 2.9 million.
The report follows a long run of data that suggests last year's three interest rates have not dampened activity in the economy, leaving open the risk of renewed inflationary wages and price pressures.
WA leads jobless rateAmong the states, the unemployment rate plunged to 2.7 per cent in Western Australia from 3.1 per cent. The state has led the nation's resources boom and the mining sector there has a particularly tight labour market.
The New South Wales unemployment rate fell to 5.0 per cent in March, compared with 5.2 per cent in February, while in Victoria it rose to 4.9 per cent from 4.8 per cent. The jobless rate fell to 5.3 per cent in Tasmania from 5.6 per cent. In Queensland the jobless rate remained at 4.0 per cent, but rose to 5.3 per cent from 5.2 per cent in South Australia. In the Northern Territory the jobless rate rose to 3.4 per cent from 3.0 per cent, while in the ACT it remained at 3.2 per cent.
Vacancies harder to fillThe managing director of recruitment firm Michael Page International Phillip Guest said jobs in the accounting, finance, non-building engineering, metal trades and nursing sectors were becoming harder to fill. A strong economy was also pushing jobs growth. “Generally speaking, that is backed up by the commodity boom that's going on and strong global economic conditions. “That's driving the strength of our economy, consumer and business confidence are up.''
More pressure on interest rates RBC Capital Markets senior economist Su-Lin Ong said the slightly lower unemployment rate would put pressure on interest rates. “Today's labour market data continue to highlight the very stretched nature of the economy with constraints evident in both goods and labour markets," she said. The data would make the Reserve Bank of Australia more likely to keep its tightening bias and raise interest rates. “It keeps alive the prospect of further tightening in the coming months. If there is a single indicator that flags such a move it is the downward trend in the unemployment rate,'' she said.
UBS senior economist Adam Carr said leading indicators of employment pointed to continued jobs growth in the short-term. Mr Carr said inflation data due on April 24 would need to be particularly soft or for there be a solid deterioration in the US economy to prevent an interest rate hike next month. "In the absence of either of those events, we think it likely the bank will tighten again in May,'' he said.
Labels: Australia, Jeff Altman, The Big Game Hunter, The Job Market Blog
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