Unemployment at 33-year low
AUSTRALIA'S unemployment rate has fallen to a 33-year low of 4.2 per cent, giving the Howard Government further scope to campaign on its success in creating jobs.
Prime Minister John Howard this week said he wanted Australia to become a full-employment economy, and that the election would be a "referendum on which party is best equipped to achieve this goal".
Economists say the unemployment rate could drop to 3 per cent early next year.
The downside for the Government is that the tight labour market makes another election-year rate rise likely.
The September labour force figures show Victoria's unemployment rate is also at a record low, falling to 4.2 per cent — the lowest since the Bureau of Statistics started recording monthly figures in 1978.
The jobs figures show an extra 13,000 jobs created in the month — below market expectations of a gain of 20,000 — taking total employment to 10.5 million. Full-time employment fell by 17,200, but this was offset by a rise in part-time employment of 30,100. The participation rate fell slightly to 65 per cent.
The Coalition argues that the jobs growth is a result of its strong economic management and that WorkChoices has kept wage pressures contained.
Employment and Workplace Relations Minister Joe Hockey said that since March last year, when the Howard Government introduced the industrial relations laws, 430,700 jobs had been created. "Ultimately having a strong economy means that you have more jobs," he said.
But Opposition Leader Kevin Rudd argued that the growth in jobs had been driven by the resources boom. He said the Government wanted to take responsibility for positive jobs growth but had failed to take responsibility for higher interest rates.
Economists say rates could be increased again as early as next month if inflation data to be released on October 24 is above the Reserve Bank's target. Citi's director of economics, Stephen Halmarick, said the unemployment rate would be steady for the next few months but would move below 4 per cent by early next year.
"It will have a three in front of it in early 2008," he said. "The Reserve Bank's got more work to do. We think there will be two rate rises by early next year.
"The Reserve Bank has a view that wages pressures are higher than the official numbers are showing, and there's an argument that the Government's industrial relations changes could be helping as well (in containing pressures)."
Macquarie Bank interest rate strategist Rory Robertson said a sharp rise in the dollar would make the Reserve Bank more cautious about increasing rates again, but if the underlying inflation figures were 0.9 per cent in the quarter, it would have no choice but to raise rates. The dollar was at a 23-year high last night, reaching US90.57¢.
Find thousands of Bilingual jobs at LatPro.com.
Prime Minister John Howard this week said he wanted Australia to become a full-employment economy, and that the election would be a "referendum on which party is best equipped to achieve this goal".
Economists say the unemployment rate could drop to 3 per cent early next year.
The downside for the Government is that the tight labour market makes another election-year rate rise likely.
The September labour force figures show Victoria's unemployment rate is also at a record low, falling to 4.2 per cent — the lowest since the Bureau of Statistics started recording monthly figures in 1978.
The jobs figures show an extra 13,000 jobs created in the month — below market expectations of a gain of 20,000 — taking total employment to 10.5 million. Full-time employment fell by 17,200, but this was offset by a rise in part-time employment of 30,100. The participation rate fell slightly to 65 per cent.
The Coalition argues that the jobs growth is a result of its strong economic management and that WorkChoices has kept wage pressures contained.
Employment and Workplace Relations Minister Joe Hockey said that since March last year, when the Howard Government introduced the industrial relations laws, 430,700 jobs had been created. "Ultimately having a strong economy means that you have more jobs," he said.
But Opposition Leader Kevin Rudd argued that the growth in jobs had been driven by the resources boom. He said the Government wanted to take responsibility for positive jobs growth but had failed to take responsibility for higher interest rates.
Economists say rates could be increased again as early as next month if inflation data to be released on October 24 is above the Reserve Bank's target. Citi's director of economics, Stephen Halmarick, said the unemployment rate would be steady for the next few months but would move below 4 per cent by early next year.
"It will have a three in front of it in early 2008," he said. "The Reserve Bank's got more work to do. We think there will be two rate rises by early next year.
"The Reserve Bank has a view that wages pressures are higher than the official numbers are showing, and there's an argument that the Government's industrial relations changes could be helping as well (in containing pressures)."
Macquarie Bank interest rate strategist Rory Robertson said a sharp rise in the dollar would make the Reserve Bank more cautious about increasing rates again, but if the underlying inflation figures were 0.9 per cent in the quarter, it would have no choice but to raise rates. The dollar was at a 23-year high last night, reaching US90.57¢.
Find thousands of Bilingual jobs at LatPro.com.
Labels: Australia, employment data
0 Comments:
Post a Comment
<< Home