Jobless rate rises despite booming market - ABS data
Gerard McManus and John Ferguson, with wires
November 08, 2007 11:45am
UNEMPLOYMENT has increased slightly to 4.3 per cent in October despite a booming jobs market, figures from the Australian Bureau of Statistics show.
The unemployment rate inched up from 4.2 per cent in September, which was a 33-year low.
The male unemployment rate increased by 2 basis points to 4.0 per cent and the female unemployment rate rose 1 basis point to 4.8 per cent.
Total employment rose a seasonally adjusted 12,900 jobs to 10,533,800.
Economists had expected total employment to rise by 20,000 jobs and a jobless rate of 4.2 per cent.
But the jobs market is booming. Full-time employment increased by 70,600 to 7.59 million and part-time employment fell 57,700 jobs to 2.95 million.
The participation rate in October was unchanged at 65 per cent.
The latest economic data came as John Howard and Peter Costello have apologised to millions of Australians hit by the sixth interest rate rise since the last election.
The Government worked frantically to prevent a voter backlash over the latest rise, the first during a federal election campaign, as economists warned of more ahead.
Its efforts included an unexpected promise to offer up to 12 months' "grandparent leave" when a grandchild is born, the chance for workers to double their holidays by taking them at half pay, and a year's unpaid parental leave for both mums and dads.
But the main focus yesterday was on mortgages. Both the PM and the Treasurer acknowledged the latest 0.25 point rate rise would hurt.
"I would say to the borrowers of Australia who are affected by this change that I am sorry about that, and I regret the additional burden that will be put upon them as a result," Mr Howard said.
Labor leader Kevin Rudd attacked the Government, repeating that the PM had broken a 2004 poll promise to keep rates low.
The Reserve Bank announced it had lifted its official cash rate to 6.75 per cent. The standard variable rate will be 8.57 per cent, adding just over $50 a month to the repayment on an average Victorian new home loan of $300,000.
Banks are expected to pass on the rate rise as soon as this week.
In December 2004, the average monthly repayment on a $300,000 loan was $2133. Today it is $2429 - a difference of $296 a month.
Treasurer Peter Costello also apologised for interest rates being at an 11-year high.
"Of course I'm sorry that people have to pay more on their mortgages," Mr Costello said.
"It's not something I enjoy, and I know they won't enjoy it."
But Mr Costello said Labor had not offered a single idea on how to keep inflation low, which was the key to keeping a lid on rates.
He said interest rates were still lower than at any time under the previous Labor government.
But Mr Rudd described the latest rate rise as a personal "breach of trust" by the Prime Minister.
"Mr Howard today was still arguing the toss about whether in fact his promise to Australians back in 2004 was seriously meant or not," Mr Rudd said.
"Well, working families did take Mr Howard seriously.
"They voted for him, and he has breached trust with them on the core undertaking on interest rates."
Shadow treasurer Wayne Swan said the Government had ignored 20 Reserve Bank warnings in three years that Australia was suffering from a skilled labour shortage.
"The Government has been inactive and complacent about skills shortages and infrastructure bottlenecks that are putting upwards pressure on inflation," Mr Swan said.
Mr Howard said a statement by RBA governor Glenn Stevens that labour costs had been contained was an endorsement for the Government's workplace laws.
"That to me is a big tick for the Government's industrial relations policy, and a big warning sign to any change in that industrial relations policy," the PM said.
The surprise policy softening of WorkChoices enraged business groups but won grudging support from unions.
Workplace Relations Minister Joe Hockey unveiled the policy without fanfare yesterday during a debate in Canberra with Labor's IR spokeswoman Julia Gillard.
Under the new workplace plan, grandparents working in firms of more than 100 employees would be entitled to take up to 52 weeks' unpaid leave.
ABC radio presenter Jon Faine claimed yesterday that earlier this year, in an off-air conversation, Mr Costello told him rates would not rise in November.
But Mr Costello dismissed the claim saying anything he had said on rates was all on the public record.
November 08, 2007 11:45am
UNEMPLOYMENT has increased slightly to 4.3 per cent in October despite a booming jobs market, figures from the Australian Bureau of Statistics show.
The unemployment rate inched up from 4.2 per cent in September, which was a 33-year low.
The male unemployment rate increased by 2 basis points to 4.0 per cent and the female unemployment rate rose 1 basis point to 4.8 per cent.
Total employment rose a seasonally adjusted 12,900 jobs to 10,533,800.
Economists had expected total employment to rise by 20,000 jobs and a jobless rate of 4.2 per cent.
But the jobs market is booming. Full-time employment increased by 70,600 to 7.59 million and part-time employment fell 57,700 jobs to 2.95 million.
The participation rate in October was unchanged at 65 per cent.
The latest economic data came as John Howard and Peter Costello have apologised to millions of Australians hit by the sixth interest rate rise since the last election.
The Government worked frantically to prevent a voter backlash over the latest rise, the first during a federal election campaign, as economists warned of more ahead.
Its efforts included an unexpected promise to offer up to 12 months' "grandparent leave" when a grandchild is born, the chance for workers to double their holidays by taking them at half pay, and a year's unpaid parental leave for both mums and dads.
But the main focus yesterday was on mortgages. Both the PM and the Treasurer acknowledged the latest 0.25 point rate rise would hurt.
"I would say to the borrowers of Australia who are affected by this change that I am sorry about that, and I regret the additional burden that will be put upon them as a result," Mr Howard said.
Labor leader Kevin Rudd attacked the Government, repeating that the PM had broken a 2004 poll promise to keep rates low.
The Reserve Bank announced it had lifted its official cash rate to 6.75 per cent. The standard variable rate will be 8.57 per cent, adding just over $50 a month to the repayment on an average Victorian new home loan of $300,000.
Banks are expected to pass on the rate rise as soon as this week.
In December 2004, the average monthly repayment on a $300,000 loan was $2133. Today it is $2429 - a difference of $296 a month.
Treasurer Peter Costello also apologised for interest rates being at an 11-year high.
"Of course I'm sorry that people have to pay more on their mortgages," Mr Costello said.
"It's not something I enjoy, and I know they won't enjoy it."
But Mr Costello said Labor had not offered a single idea on how to keep inflation low, which was the key to keeping a lid on rates.
He said interest rates were still lower than at any time under the previous Labor government.
But Mr Rudd described the latest rate rise as a personal "breach of trust" by the Prime Minister.
"Mr Howard today was still arguing the toss about whether in fact his promise to Australians back in 2004 was seriously meant or not," Mr Rudd said.
"Well, working families did take Mr Howard seriously.
"They voted for him, and he has breached trust with them on the core undertaking on interest rates."
Shadow treasurer Wayne Swan said the Government had ignored 20 Reserve Bank warnings in three years that Australia was suffering from a skilled labour shortage.
"The Government has been inactive and complacent about skills shortages and infrastructure bottlenecks that are putting upwards pressure on inflation," Mr Swan said.
Mr Howard said a statement by RBA governor Glenn Stevens that labour costs had been contained was an endorsement for the Government's workplace laws.
"That to me is a big tick for the Government's industrial relations policy, and a big warning sign to any change in that industrial relations policy," the PM said.
The surprise policy softening of WorkChoices enraged business groups but won grudging support from unions.
Workplace Relations Minister Joe Hockey unveiled the policy without fanfare yesterday during a debate in Canberra with Labor's IR spokeswoman Julia Gillard.
Under the new workplace plan, grandparents working in firms of more than 100 employees would be entitled to take up to 52 weeks' unpaid leave.
ABC radio presenter Jon Faine claimed yesterday that earlier this year, in an off-air conversation, Mr Costello told him rates would not rise in November.
But Mr Costello dismissed the claim saying anything he had said on rates was all on the public record.
Labels: Australia, employment
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