Strong Job Growth Suppressing Unemployment in Australia

Australian employers added more jobs than expected in August, indicating if the interest rate is at a record low, the depreciation of the currency and weak wage growth have encouraged the recruitment of labor.

Report of the Australian Bureau of Statistics on Thursday showed the number of jobs rose 17,400 in July, far exceeded the estimated increase of 5,000. Full-time employment increased by 11,500, with part-time jobs also rose by 5,900. Those figures help reduce the unemployment rate in Australia fell to 6.2% in August from 6.3% in the previous month. The employment report also showed the level of participation, the size of the labor force in proportion to the population, fell slightly to 65% from the previous 65.1%.

The report also indicates the potential for acceleration in housing construction and tourism industries of Australia, which has been trying to absorb the excess labor in the mining sector, which is slowing. Nevertheless, so far the decline in business spending outlook and falling commodity prices still dampen the economic outlook.