Dollar nears US80¢ on back of solid employment data
THE Australian dollar has come within a whisker of US80¢ after a solid employment report card highlighted a fresh burst of full-time work, adding to an improving economic outlook.
The Aussie climbed to US79.89¢ – a fresh two-year high – on the back of yesterday’s official figures, which showed the jobless rate was 5.6 per cent last month, equalling its lowest level in four years.
That figure was unchanged from an upwardly revised 5.6 per cent in May.
In all, 14,000 jobs were added during the month, largely in line with economists’ expectations.
There was another jump in full-time employment, up 62,000 following a 53,400 gain in May, according to the Australian Bureau of Statistics.
It was offset by a 48,000slide in part-time positions, adding fuel to suggestions the trend towards a casualisation of the workforce may be nearing an end.
“The two-month job gain (of 115,400 jobs) was the largest back-to-back increase in fulltime jobs since January 1988,” said St George/Bank of Melbourne senior economist Janu Chan. “The annual pace of growth in full-time jobs now exceeds annual growth in parttime work.”
Ms Chan said the swing back to full-timers served as another sign of confidence among employers, backing up the optimism seen in business surveys and the uptick in job advertisements. The participation rate, which measures the proportion of working-age people employed or seeking work, climbed to an 18-month high of 65 per cent.
Queensland was the only state that went backwards, shedding 1000 jobs.
Yesterday’s boost followed the Australian dollar climbing on Wednesday to its highest level since May 2015, supported by higher commodity prices and a subdued US dollar.