Australian jobs growth surges, unemployment near 5-year lows (MYR)

Cornelia Mascio
Dicembre 14, 2017

Australia's unemployment rate held steady at 5.4% in November.

The total number of people with jobs rose by 61,600 in November, the Australian Bureau of Statistics said, with full-time employment rising by 41,900 and part-time positions rising by 19,700. Australia's annual jobs growth rate at 3.2 percent is more than twice the USA pace of 1.4 percent and the second fastest on record.

More details are in the November 2017 issue of Labour Force, Australia (cat.no. 6202.0). The participation rate hopped to 65.5 percent, heights not seen since early 2011.

But the unemployment rate was steady, due to a 0.3 per cent increase in the participation rate.

"Over the course of 2017 the underemployment rate has fallen from an historical high of 8.7 per cent in February to 8.4 per cent in November, its lowest point in nearly two years", Mr Hockman said.

Yet, interest rate futures still imply an increase in the 1.50 percent cash rate is months away, with a hike not fully priced in until early 2019.

While firms are scooping up workers, they are not so keen on paying them more, leaving wage growth near record lows and putting an unwelcome cap on consumer spending and inflation.

"But there is still a lot more work to be done, what it does indicate though that we're heading in the right direction is over the last 12 months, South Australia's recorded a bigger drop in its unemployment rate than anywhere else."

The scrooge-like pace of wage rises is a major reason the Reserve Bank of Australia (RBA) last month forecast core inflation would not reach the floor of its 2 to 3 percent target band until early 2019, a year later than previously hoped.

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