ID :
206032
Thu, 09/08/2011 - 14:31
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https://oananews.org//node/206032
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Jobless rate low by any measure: govt
SYDNEY (AAP) - 08 Sept - The federal government insists that the outlook for employment is strong, despite an unexpected further rise in the jobless rate to a 10-month high.
Economists say the Reserve Bank of Australia (RBA) won't be lifting interest rates while the unemployment rate is rising, even if the central bank has ongoing concerns about the inflation outlook.
Official labour force data released on Thursday showed the unemployment rate pushing up to 5.3 per cent in August from 5.1 per cent the previous month as nearly 10,000 positions were lost.
Jobs Minister Chris Evans said the unemployment rate, which stood at 4.9 per cent in both March and April, remained low "by any yardstick".
"We think we will continue to see jobs growth in Australia over coming months," Senator Evans told reporters in Perth.
The latest jobs numbers were a reflection of a patchwork economy but its fundamentals remained very strong, he said.
But opposition treasury spokesman Joe Hockey blames the government for employers becoming cautious about hiring staff because of the government's proposed mining and carbon taxes.
"There can be no excuses for rising unemployment at a time when the country is experiencing unprecedented demand for resources and 140-year highs in the terms of trade," Mr Hockey said in a statement.
The total number of people employed fell by a seasonally adjusted 9700 in August compared to the previous month, when economists had predicted a 12,000 increase.
Full-time employment fell by 12,600 and was only partially offset by a 2900 increase in part-time workers.
The July employment result was also revised to a fall of 4000 jobs, much larger than 100 losses originally reported.
The data came just 24 hours after the national accounts showed the economy had rebounded by a strong 1.2 per cent in the June quarter, its fastest pace in four years, and came after a weak first three months of the year following last summer's natural disasters.
Australian Chamber of Commerce and Industry (ACCI) director of economics and industry policy Greg Evans said the jobs data suggested that the economy was not as strong as many people had indicated.
"Clearly, the Australian economy is under some strain," Mr Evans told reporters in Canberra.
Business and consumer confidence was flagging, some sectors of the economy were reeling under the impact of a higher currency, and there was uncertainty in the global economy, meaning that interest rates would remain on hold into next year, he said.
"Whether or not the Reserve Bank cuts rates is very dependent on international circumstances and we will have to see how that pans out," Mr Evans said.
"I think the Reserve Bank itself doesn't know."
NAB Capital chief economist Rob Henderson said he couldn't rule out further rises in unemployment over the next few months, but he expected the rate to be trending down again in 2012.
But in the meantime it would make the Reserve Bank's job of containing inflation easier as slowing labour demand would put downward pressure on labour costs, Mr Henderson said.
"However, the RBA's 'sales job' of explaining to the community why they do not need to cut rates just got harder," he said.
"There will be louder calls for rate cuts now ... (but) one thing is for sure: they will not be hiking while unemployment is rising."
Economists say the Reserve Bank of Australia (RBA) won't be lifting interest rates while the unemployment rate is rising, even if the central bank has ongoing concerns about the inflation outlook.
Official labour force data released on Thursday showed the unemployment rate pushing up to 5.3 per cent in August from 5.1 per cent the previous month as nearly 10,000 positions were lost.
Jobs Minister Chris Evans said the unemployment rate, which stood at 4.9 per cent in both March and April, remained low "by any yardstick".
"We think we will continue to see jobs growth in Australia over coming months," Senator Evans told reporters in Perth.
The latest jobs numbers were a reflection of a patchwork economy but its fundamentals remained very strong, he said.
But opposition treasury spokesman Joe Hockey blames the government for employers becoming cautious about hiring staff because of the government's proposed mining and carbon taxes.
"There can be no excuses for rising unemployment at a time when the country is experiencing unprecedented demand for resources and 140-year highs in the terms of trade," Mr Hockey said in a statement.
The total number of people employed fell by a seasonally adjusted 9700 in August compared to the previous month, when economists had predicted a 12,000 increase.
Full-time employment fell by 12,600 and was only partially offset by a 2900 increase in part-time workers.
The July employment result was also revised to a fall of 4000 jobs, much larger than 100 losses originally reported.
The data came just 24 hours after the national accounts showed the economy had rebounded by a strong 1.2 per cent in the June quarter, its fastest pace in four years, and came after a weak first three months of the year following last summer's natural disasters.
Australian Chamber of Commerce and Industry (ACCI) director of economics and industry policy Greg Evans said the jobs data suggested that the economy was not as strong as many people had indicated.
"Clearly, the Australian economy is under some strain," Mr Evans told reporters in Canberra.
Business and consumer confidence was flagging, some sectors of the economy were reeling under the impact of a higher currency, and there was uncertainty in the global economy, meaning that interest rates would remain on hold into next year, he said.
"Whether or not the Reserve Bank cuts rates is very dependent on international circumstances and we will have to see how that pans out," Mr Evans said.
"I think the Reserve Bank itself doesn't know."
NAB Capital chief economist Rob Henderson said he couldn't rule out further rises in unemployment over the next few months, but he expected the rate to be trending down again in 2012.
But in the meantime it would make the Reserve Bank's job of containing inflation easier as slowing labour demand would put downward pressure on labour costs, Mr Henderson said.
"However, the RBA's 'sales job' of explaining to the community why they do not need to cut rates just got harder," he said.
"There will be louder calls for rate cuts now ... (but) one thing is for sure: they will not be hiking while unemployment is rising."
