The jobless rate has fallen to a surprise 5.6 per cent, further reducing the odds of another rate cut by the Reserve Bank next month.
The economy added 9100 jobs in September as the unemployment rate slipped from August's four-year high of 5.8 per cent. Full-time positions rose by 5000 while part-time jobs lifted by 4100 in September.
The participation rate was 64.9 per cent, down from 65 per cent in August. The aggregate monthly hours worked fell to 1.6 billion hours.
The Australian dollar swung wildly on the news before settling at 94.62 US cents - slightly above the morning's trade.
Financial markets pared back their expectations of a November rate cut to 11 per cent from 18 per cent yesterday, Credit Suisse data showed.
While the unemployment rate fell to a level last seen in May, the participation rate - the percentage of people either in work or looking for work - has continued to slide over the past few months to hit 64.9 per cent in September, an almost seven-year low.
According to research by TD Securities, if the participation rate remained at its end-2011 level of 65.5 per cent, with everything else equal, the jobless rate would be at 6.6 per cent in September.
"The RBA is likely to now focus on uncovering the drivers behind this steady fall in the participation rate over the past three years, to gauge if this downturn is a cyclical or structural phenomenon," TD Securities head of Asia-Pacific research Annette Beacher said
In seasonally adjusted terms, the unemployment rate fell in NSW, South Australia and Western Australia. But it rose from 5.7 to 5.8 per cent in Victoria, and remained steady in Queensland and Tasmania at 5.9 and 8.3 per cent respectively.
fucken classic. you idiots crack me up. it's possible because you morons just believe what you want to hear.
It's pretty much game over for the bears. Employment is usually the last to recover after a downturn, and it looks like employment has now turned the corner and joined all the other positive indicators - house prices, auction clearance rates, business sentiment, credit growth, stock market etc. This boom could turn out to be a pretty big one.
Cool, so I expect you are out loading up on debt to buy as many houses as you can?
You cant lose man!
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
There has been very little job growth this year and nowhere near enough to absorb new immigrant workers. The participation rate has been falling however, making things look better than they are. I don't think we are out of the woods just because we had 10,000 new jobs in a month using volatile measurements.
maybe the rest of the bears would like to have applied this kind of logic to the last set of unemployment numbers when they rose?
too much to ask i guess. pascoe? give me a fucking break. he is just pissed off anything good happened that might be attributed to abbott.
are you also a rabid labor voter???
Nationwide only 600 jobs have been created since April. You think that is not a point?
Population has risen more than 100,000 in that time. Immigration is just adding to the mass of people on government benefits.
ffs.
Elastic
10 Oct 2013, 08:37 PM
There has been very little job growth this year and nowhere near enough to absorb new immigrant workers. The participation rate has been falling however, making things look better than they are. I don't think we are out of the woods just because we had 10,000 new jobs in a month using volatile measurements.
Also combine that with demographic changes that come with an ageing population.
Part time data was also tainted by jobs in the election. Polling Booths and counting etc.
MORE than 100,000 people have left the workforce in the past three months in the biggest exodus since the 1992 recession, prompting the Abbott government to concede it has inherited a "clearly soft" labour market.
The unemployment rate registered a surprising drop from 5.8 to 5.6 per cent in September. However, this was largely explained by people giving up the search for work and dropping out of the labour force.
The share of the working-age population either with a job or actively seeking one has fallen to 64.9 per cent, its lowest level since late 2006.
Employment Minister Eric Abetz said while the labour market was "clearly soft" and reflected a "subdued economic environment", the Coalition would deliver jobs growth.
"The Coalition will create a diverse powerhouse economy that will create one million jobs over the next five years and two million jobs over the coming decade," Senator Abetz said.
He added that the election of the Coalition was giving business the confidence to invest.
However, the minister did acknowledge that the falling participation rate reflected discouraged jobseekers giving up the search for work. He noted that the share of the labour force that was either unemployed or working less hours than desired had risen to 13.7 per cent, its highest level since early 2002.
Although Treasury anticipated the weak state of the labour force, forecasting before the election that the jobless rate would hit 6.25 per cent by the middle of next year, the latest survey underlines the economic challenge ahead of the new government.
Barclays chief economist Kieran Davies said the Australian Bureau of Statistics report was consistent with an economy that was underperforming. Business and consumer confidence had been behaving as though the worst of Australia's challenges were behind it, he said. However, the really big falls in business investment as mining projects were completed would not start until next year.
"Mining investment is rolling over faster than was expected," Mr Davies said. "There are a lot of people employed in construction of projects, and that will be a difficult adjustment for the economy to deal with."
Speaking in Brunei, where he was attending the East Asia Summit, Tony Abbott said the Coalition's pursuit of trade deals was about creating employment. "These meetings are essentially about trying to ensure that we have the right environment to create more jobs for Australians," the Prime Minister said.
Senator Abetz said other Coalition initiatives to generate employment included its plan to abolish the carbon tax and providing financial incentives for employers to hire long-term unemployed and older jobseekers.
UBS interest rate strategist Matthew Johnson said about 3.75 per cent of workers were either losing jobs or leaving the labour force every month. While there was always a large turnover in the labour market, this was the highest rate since 2001. "People who have jobs are more likely to lose them, and people without jobs have a harder task finding one," Mr Johnson said.
He calculated that just under 20 per cent of the unemployed found a job each month, which is also the lowest figure since the economic downturn in 2001.
University of Newcastle professor Bill Mitchell said while the official unemployment rate remained low, the number of hidden jobless was climbing.
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