MNI DATA IMPACT: Aussie Unemployment Rate Lower on P/T Pick-Up

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's unemployment rate recorded a surprise fall in

November, falling 0.1 percentage points to 5.2%, helped by a pre-Christmas

pick-up in part-time employment, data released Thursday showed. 

     Here are other key points from the release from the Australian Bureau of

Statistics:

     -The participation rate has set a series of new highs this year as

employment has grown, and was stable at a record 66.0% in November. The

increasing participation rate has kept the unemployment rate at over 5.0% this

year, despite increases in overall employment.

     -Of the 39,900 jobs added in November, 35,700 were part time with big gains

in Queensland and Victoria as employers added staff in anticipation of a

Christmas rush. Employment is now at 12.95 million, up 2.0% year on year.

     -The Reserve Bank of Australia has restated full employment as the key

objective of monetary policy, and has suggested it will continue with low rates

-- and even more cuts -- until achieved. The Bank has not stated explicitly what

figure represents full employment, other than to say it is the rate at which

wages growth starts to pick up, and this could be at around 4.5%. The latest

data plays into the Bank's narrative that the economy has reached a "gentle

turning point", although many of the part time jobs could be shed after the

holiday period.

     -Despite the positive unemployment figure today, underemployment -- the

number of people either unemployed or wanting to work more -- is still high at

13.5%. Underemployment is one factor keeping wages growth, consumption and

inflation low.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MALDS$,M$A$$$,M$L$$$]