MNI DATA ANALYSIS: Record Uninterrupted Australia Job Gains

By Sophia Rodrigues

     SYDNEY (MNI) - Australia posted a new record streak of monthly job gains in

October, beating the September record as the economy has the economy added jobs

for 13th month in a row, pushing down the unemployment rate to a level last seen

in February 2013.

     The total rise in jobs for the 13 months of the streak is 375,700 which the

beat 368,400 jobs created in 1989 from 12 straight months of gain. 

     The employment gain fell well short of market expectations but the drop in

the unemployment rate will provide some comfort to the Reserve Bank of Australia

as the it shows a further reduction in spare capacity, which is important for

wage growth prospects.

     Data published by the Australian Bureau of Statistics Thursday showed the

jobless rate fell to 5.4%, matching the rate last seen in February 2013.

     The economy added 3,700 jobs in October,  against expectations for a gain

of 20,000, while the number of unemployed fell 8,100.

     In the past year, employment has grown 3.0%, surpassing the 2.6% rise in

the labor force, but the jobless rate had fallen just 0.1 percentage point to

5.5% as of September from 5.6% last October, as participation rate rose strongly

during this period -- to 65.2% from 64.4%.

     In the latest month, the fall in jobless rate was due to a decline in

participation rate, the first decline since January.

     The majority of gains in employment in the past year came from full-time

jobs which rose 297,900, or an average of 24,800 per month. Part-time jobs rose

57,900 in the period, an average of 4,800 per month.

     The employment-to-population rate has also seen a steady increase in the

past year, with the rate rising to 61.6% in October from 60.8% in the same month

last year. In the latest month, however, this ratio declined 0.1 percentage

point -- the first fall since February. 

     Hours worked rose 4.6 million hours to 1,723 million hours.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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