Full-time jobs spike fails to bring rate down

ALMOST 26,000 new fulltime jobs in March failed to stop a rise in the unemployment rate, from 4.9 per cent to 5 per cent, as more people registered for work.

The latest seasonally adjusted employment numbers from the Australian Bureau of Statistics show an extra 25,700 people found work during the month.

But the jobless rate ticked upwards as an extra 42,700 people registered as unemployed.

The strong jobs growth — well up on the previous month’s 10,700 new jobs — still grabbed most of the attention from economists.

The latest jobs read was made up of 48,300 new fulltime jobs, offset by a loss of 22,600 part-time jobs.

However, other economic indicators, including falling house prices, were expected to detract from the healthy lift inemployment and prompt the Reserve Bank to eventually cut interest rates to stimulate the economy, analysts said.

“The solid employment gain in March doesn’t resolve the tension between weak activity and healthy labour market data,” Capital Economics senior economist Marcel Thieliant said.

“Our view is that the drag from the housing downturn will eventually win the upper hand and that the Reserve Bank will cut interest rates before long.”

The mixed economy was also highlighted by CommSec chief economist Craig James.

“Get used to seeing a jobless rate around 5 per cent — there isn’t sufficient positive or negative economic momentum to drive the jobless rate away from 5 per said.

He said the participation rate — the proportion of people looking for jobs — of 65.7 per cent was at all-time highs on a trend basis.

Queensland reported the greatest increase in overall employment, up 10,400 people.

New South Wales fell the furthest, down 2600 people, followed by Tasmania, down 1800 people. cent,” Mr James