Joblessness in Australia falls unexpectedly
Friday, 12 September 2008
SYDNEY, Sept 11 (AFP): Australian unemployment fell unexpectedly in August to 4.1 per cent, its lowest level in five months, despite a slowing economy and rising prices, official figures showed today.
Economists had widely expected the country's jobless rate would rise slightly from 4.3 to 4.4 per cent in August, but the Australian Bureau of Statistics instead said the rate had fallen.
The number of people employed also rose by a seasonally adjusted 14,600 to 10.744 million, including a 7,500 increase in full-time employment, the bureau said.
Treasurer Wayne Swan said the jobless numbers were very solid and showed the underlying fundamentals of the Australian economy remained strong despite a slew of recent figures pointing to tougher times.
"They are very solid figures with 14,000-plus jobs created and it's very encouraging and a reminder that the underlying fundamentals of the economy are strong but we are not immune from the fallout in global events," Swan told reporters.
Central bank Governor Glenn Stevens said this week that he expected unemployment to rise by a percentage point in the next year or so, suggesting a figure of around 5.0 per cent.
The Reserve Bank of Australia cut its key interest rate by 0.25 percentage points this month, the first reduction in nearly seven years as signs of an economic slowdown emerged. Analysts have predicted a further cut in October.
Australia's economy grew at its slowest pace in almost four years in the three months to June, official data showed earlier this month, but the government insisted the performance was solid amid the global slowdown.
Economists had widely expected the country's jobless rate would rise slightly from 4.3 to 4.4 per cent in August, but the Australian Bureau of Statistics instead said the rate had fallen.
The number of people employed also rose by a seasonally adjusted 14,600 to 10.744 million, including a 7,500 increase in full-time employment, the bureau said.
Treasurer Wayne Swan said the jobless numbers were very solid and showed the underlying fundamentals of the Australian economy remained strong despite a slew of recent figures pointing to tougher times.
"They are very solid figures with 14,000-plus jobs created and it's very encouraging and a reminder that the underlying fundamentals of the economy are strong but we are not immune from the fallout in global events," Swan told reporters.
Central bank Governor Glenn Stevens said this week that he expected unemployment to rise by a percentage point in the next year or so, suggesting a figure of around 5.0 per cent.
The Reserve Bank of Australia cut its key interest rate by 0.25 percentage points this month, the first reduction in nearly seven years as signs of an economic slowdown emerged. Analysts have predicted a further cut in October.
Australia's economy grew at its slowest pace in almost four years in the three months to June, official data showed earlier this month, but the government insisted the performance was solid amid the global slowdown.