MNI DATA IMPACT: Australia's Jobless Rate Slips In September

--Slight Fall In Participation Rate Sees Unemployment Fall To 5.2%

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's unemployment rate fell modestly in September as

the overall participation rate fell, data released Thursday by the Australian

Bureau of Statistics showed. 

     Points of note in the release include:

Unemployment rate lower 

Australia's unemployment rate recorded a first fall for the second half of 2019,

dipping 0.1 percentage point to 5.2%. The rate was at a decade low of 4.9% in

February.

Participation rate off record highs 

The participation rate has set a series of new highs, reaching 66.2% in August,

but fell back to 66.1% in September. The increasing participation rate has seen

unemployment has continue to mover higher, despite increases in overall

employment.

More people employed 

Another 14,700 jobs were created in September, with total employment now at 12.9

million, up 2.5% year on year.

Full time and part time 

Full-time employment increased by 26,200 in September while part-time employment

fell by 11,400.

Implications for monetary policy 

The Reserve Bank of Australia recently restated full employment as the key

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

-- and even more cuts -- until it is 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%.

An increase in unemployment in September would have heightened speculation of a

fourth interest rate cut from the RBA in November, although that expectation

will persist despite the slight improvement.

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

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