Jobs growth data surprises analysts
ALMOST 20,000 Australians found work last month, far outpacing expectations of the nation’s jobs growth and heaping together a year of employment growth.
This helped drag the unemployment rate down to 5.5 per cent in September, compared with 5.6 per cent in August.
Doing the heavy lifting were people finding part-time employment increasing 13,700 and people landing full-time employment increasing 6100.
This means there are now 12.3 million Aussies with a job.
Economists had tipped the economy would produce 15,000 jobs.
The participation rate, which tracks the number of people looking for work, was steady at 65.2 per cent.
Victoria created the second highest number of jobs with 8900, bringing the seasonally adjusted rate to 6 per cent — down from 6.1 per cent the month before. NSW added 21,100 positions, bringing its rate to 4.6 per cent from 4.9 per cent.
In trend terms, which irons out seasonal employment trends, it is the lowest unemployment rate in four years.
“The good news keeps on flowing. More people are looking for work. More people are finding work. The lowest jobless rate for over four years,” Commsec chief economist Craig James said.
Mr James said the share of women in the job market was the highest on record.
And he said the figures, which equated to “full employment” in states such as NSW, meant the long wait for better wages could be almost over.
“The job market is healthy and is tightening in many parts, suggesting higher wage growth is ahead,” he said.
HSBC chief economist Paul Bloxham said he expected to see the labour market “continuing to tighten up” and this put “modest” upward pressure on wages growth.
“We expect stronger growth and tighter labour market to lift underlying inflation,” Mr Bloxham said.
He said “all eyes” would turn to Wednesday’s third quarter inflation reading to see if the price of goods and services was “well past its trough”.
Mr Bloxham said he expects the Reserve Bank to start lifting its cash rate in early 2018 as consumer prices rise.