Aus­tralia’s job­less rate hits 3-year low in Au­gust

The Sun (Malaysia) - - SUNBIZ -

SYD­NEY: Aus­tralia’s job­less rate hit a three­year low in Au­gust, yet em­ploy­ment still dipped in the month and the swelling num­bers look­ing to work longer hours pointed to plenty of spare ca­pac­ity in the labour mar­ket.

Yes­ter­day’s data from the Aus­tralian Bureau of Sta­tis­tics showed 3,900 net new jobs were lost in Au­gust, a sharp con­trast to fore­casts of a 15,000 gain. Even so, the job­less rate fell to 5.6% as fewer peo­ple looked for work.

While full-time po­si­tions rose 11,500 in Au­gust, that was not enough to make up for a plunge in July.

All of which could keep wages growth at record lows and feed through to muted de­mand and con­fi­dence, a wor­ry­ing trend that might force the Re­serve Bank of Aus­tralia’s hand once again.

“You wouldn’t ex­pect on these num­bers, wages growth push­ing back up any­time soon,” said Ben Jar­man, Syd­ney-based econ­o­mist at JP Mor­gan. “We still think there’s enough spare ca­pac­ity in the mar­ket to keep in­fla­tion low and put pres­sure on the RBA to lower rates over time.”

Cur­rency in­vestors re­acted to the mixed re­port and pushed the Aus­tralian dol­lar about 20 ticks lower to $0.7450 (RM2.30)

Debt mar­kets im­ply a 30% chance of an­other cut in rates by Christ­mas. – Reuters

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.