WA jobless rate surges
WA has bucked the national trend to record a big jump in the jobless rate, attributable mainly to the mining downturn.
While the national unemployment rate fell from 6.2 per cent to 6.1 per cent in December, WA’s jobless rate surged from 5.3 per cent to 6 per cent on a seasonally adjusted basis.
The Australian Bureau of Statistics data shows a net 7000 jobs were lost in WA in December, while every other state recorded a fall in its unemployment rate.
The national economy added a whopping 37,000 jobs last month, much better than the 5000 jobs economists were expecting, bringing the number of employed Australians to 11.7 million.
That rise was mainly driven by full-time jobs, which rose by 41,600, while part-time employment fell by 4000, according to the Australian Bureau of Statistics figures released this morning.
The upbeat data gave the Australian dollar a shot in the arm, with the currency jumping as high as 82.06 US cents following its release.
However the news dampened the chances of another rate cut, which earlier this morning, the ANZ had predicted was more likely.
The strong result means interest rates are firmly on hold, CommSec chief economist Craig James said.
"It's a very encouraging result for the economy, with back-to-back jobs growth and the expectation of further job gains given the data we've seen on job advertisements and vacancies,” Mr James said.
"We've also got a housing market which continues to fire, falls in petrol prices which boosts business revenues and consumer spending, so the outlook is pretty good."
JP Morgan economist Ben Jarman said the strong gain in full-time employment was encouraging, with the second straight month of jobs growth diminishing the chances of an imminent rate cut from the Reserve Bank.
But it was still premature to say the unemployment rate had peaked, he said.
"This report probably does overstate the momentum and strength in the labour market a bit, because it does appear that growth dropped a gear in the later part of the year,” Mr Jarman said.
"We think it's premature to call a peak in the unemployment rate, but it means the RBA won't be sitting there looking at a labour market that's deteriorating."
