Australian Economy Generates More Part-Time Jobs
Australia's economy generated more part-time jobs in the month of July rising 22, 100 to 3.40 million, emphasizing the state of local firms that are not woven within the industries of the mining sector.
Data from the Australian Bureau of Statistics indicated that those given full-time work fell 22,200 to 8.06 million in July.
Unemployment figures during the period rose in July recording 5.1 percent as some retailers and other services-related industries have closed shop.
The bureau, however, said its workforce participation rate, or the proportion of working-age people at work or actively seeking work, was steady at 65.6 per cent in July from June.
The services and retail industries have not fully bounced back as related consumer sentiment has remained low in the last two quarters.
According to Moody's Economy.com analyst Katrina Ell: ''July's employment figure, combined with sluggish retail sales and downbeat consumer confidence takes the pressure of the Reserve Bank to hike rates in the near term.''
Related reports from the Australian and the Sydney Morning Herald said the unemployment rate has been hovering around 5 percent or lower since December.
In terms of the jobless outlook, the job figures will point out to the downside of the economy as some employers have put off hiring to adjust to slack in demand.
''It's definitely on the weaker side of the things,'' said Macquarie senior economist Brian Redican as quoted by the Sydney Morning Herald. ''This is the first sign the unemployment rate is beginning to drift up.''
He said that the figures are consistent with other indicators of the labour market - job ads and hiring intentions.
''It certainly removes any rationale to tighten rates at this stage,'' he said. ''If it continues on for a couple more months, rate cuts will be on the agenda. Even for the central bank.''
Earlier this week, NAB chief Cameron Clyne said the country's low unemployment levels has been crucial to helping his bank generate record profit - by minimising bad debts - and for the health of the overall economy.
"The reality is if we start to see escalating global concerns and unemployment rise, then it's a different ballgame," Clyne said.