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AUSTRALIA 
Employment up, despite slowing economy
Thursday, 7 August, 2008
Earlier this week, the Reserve Bank of Australia indicated it was on the brink of ending a six-year run of interest rate hikes in light of evidence of an economic slowdown.
The number of people in full-time employment surged by 53,700 in July, putting employment figures at odds with other data suggesting the economy is slowing.
Earlier this week, the Reserve Bank of Australia (RBA) indicated it was on the brink of ending a six-year run of interest rate hikes in light of evidence of an economic slowdown.
But the Australian Bureau of Statistics says the total number of people employed in July rose by a seasonally-adjusted 10,900. Part-time jobs dropped 42,800.
The jobless rate was 4.3 per cent, unchanged for the fourth straight month after revisions. Economists had expected total employment to rise by a slim 1,300.
'Difficult' economic conditions
"These employment figures are welcome, particularly given that we face the most difficult global economic condition in 25 years," said Federal Treasurer Wayne Swan.
But Mr Swan warned worse was likely to come in the following months. "Employment growth is slowing and it's slowing on the back of eight interest rises over three years," he cautioned.
Employment Minister and Acting Prime Minister Julia Gillard said the employment figures showed that the Australian economy remained fundamentally strong.
"As we've been saying for some time, Australia is not immune from the global slowdown, but we're better placed than other nations to withstand it," she said.
ABS cost-cutting exercise
The ABS has warned its jobs series could prove more volatile after it had to cut its labour force sample size by 24 per cent due to the bureau's enforced cost-cutting exercise in the budget.
South Australia reported the largest fall in unemployment in July, easing to 4.6 per cent from 4.8 per cent, while in Queensland it declined to 3.7 per cent from 3.8 per cent and in Western Australia it fell to 3.1 per cent from 3.2 per cent.
The jobless rate was unchanged at 4.6 per cent in Victoria, but rose to 4.5 per cent from 4.2 per cent in Tasmania and was up to 4.7 per cent in NSW from 4.6 per cent the previous month.
In the territories, the unemployment rate fell to 2.9 per cent in the Northern Territory in July from 3.2 per cent, while in the ACT it was unchanged at 2.7 per cent for a fourth straight month.
Source: AAP/SBS
Earlier this week, the Reserve Bank of Australia (RBA) indicated it was on the brink of ending a six-year run of interest rate hikes in light of evidence of an economic slowdown.
But the Australian Bureau of Statistics says the total number of people employed in July rose by a seasonally-adjusted 10,900. Part-time jobs dropped 42,800.
The jobless rate was 4.3 per cent, unchanged for the fourth straight month after revisions. Economists had expected total employment to rise by a slim 1,300.
'Difficult' economic conditions
"These employment figures are welcome, particularly given that we face the most difficult global economic condition in 25 years," said Federal Treasurer Wayne Swan.
But Mr Swan warned worse was likely to come in the following months. "Employment growth is slowing and it's slowing on the back of eight interest rises over three years," he cautioned.
Employment Minister and Acting Prime Minister Julia Gillard said the employment figures showed that the Australian economy remained fundamentally strong.
"As we've been saying for some time, Australia is not immune from the global slowdown, but we're better placed than other nations to withstand it," she said.
ABS cost-cutting exercise
The ABS has warned its jobs series could prove more volatile after it had to cut its labour force sample size by 24 per cent due to the bureau's enforced cost-cutting exercise in the budget.
South Australia reported the largest fall in unemployment in July, easing to 4.6 per cent from 4.8 per cent, while in Queensland it declined to 3.7 per cent from 3.8 per cent and in Western Australia it fell to 3.1 per cent from 3.2 per cent.
The jobless rate was unchanged at 4.6 per cent in Victoria, but rose to 4.5 per cent from 4.2 per cent in Tasmania and was up to 4.7 per cent in NSW from 4.6 per cent the previous month.
In the territories, the unemployment rate fell to 2.9 per cent in the Northern Territory in July from 3.2 per cent, while in the ACT it was unchanged at 2.7 per cent for a fourth straight month.
Source: AAP/SBS
