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Australia's unemployment rate drops unexpectedly to 5.6pc

Australia's unemployment rate fell unexpectedly from 5.8 per cent to 5.6 per cent last month, helped by a decline in workforce participation and some modest job creation.

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Australia's unemployment rate drops unexpectedly to 5.6pc

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  1. Australia's unemployment rate drops unexpectedly to 5.6pc Source: http://www.abc.net.au/news/2013-10-10/unemployment-drops-unexpectedly-in-september/5013784

  2. Australia's unemployment rate fell unexpectedly from 5.8 per cent to 5.6 per cent last month, helped by a decline in workforce participation and some modest job creation.

  3. Australia's unemployment rate fell unexpectedly from 5.8 per cent to 5.6 per cent last month, helped by a decline in workforce participation and some modest job creation. The number of people employed rose by 9,100 in September, seasonally adjusted, with growth in both full-time jobs (up 5,000) and part-time positions (up 4,100), according to the latest labour force figures from the Australian Bureau of Statistics. The participation rate, which is the proportion of people in work or looking for work, fell to 64.9 per cent, the lowest level since November 2006. While persistently weak job creation shows the labour market remains soft, ANZ head of Australian economics Justin Fabo says there are encouraging signs in other surveys of hiring intentions.

  4. "We've seen job ads and a couple of other measures just improve a tad in the last couple of months, and normally that would be consistent with at least a stabilisation in the unemployment rate," MrFabo said. Several economists say the continued decline in participation suggests people may be giving up the hunt for a job but MrFabo believes the ageing population may be hiding the true picture. "A large part of reason for why it's fallen is the ageing of the population," he said. "So when you strip out those people who are aged over 65 - and not many of them work - when you strip them out the participation rate's actually increased a little bit over the past year.“ Around the country, unemployment dropped sharply in both South Australia (from 6.8 per cent to 6 per cent) and in Western Australia (from 5 per cent to 4.6 per cent). It also fell in New South Wales (from 5.9 per cent to 5.6 per cent). The jobless rate rose in Victoria (5.8 per cent) and the ACT (to 4.1 per cent, in trend terms), and it held steady in Queensland (5.9 per cent), the Northern Territory (5.5 per cent) and in Tasmania (8.5 per cent in trend terms).

  5. From mid-next year, mining investment is expected to fall sharply, and MrFabo says it will be a significant drag on growth. "It's still not clear how all this is going to play out," he said. "So for now we're still expecting the unemployment rate to be around the high-fives, maybe six per cent through a large part of next year.“ MrFabo expects the Reserve Bank to hold the official cash rate at 2.5 per cent for at least several months. The dollar rose to 94.7 US cents, reflecting expectations that interest rates would be left unchanged after the stronger than forecast drop in unemployment. read more:  • http://www.westhillconsulting-career.com/blog • http://www.westhillconsulting-career.com/

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