Australian economy creates jobs

Figures show that in the past 10 months a total of 362,500 jobs have been created in Australia, including 41,700 jobs in June.

The jobless rate fell to its lowest level since 1976, 5 percent. Employment growth is at 3.8 percent for the year.

Two-thirds of the jobs created since last August are higher-paying full time positions. 64.7 percent of the adult population of Australia are employed, an all-time high.

The amount of job growth in June came as a surprise in light of a decline in domestic demand and housing, as well as a collection of economic indicators that point to a general downturn in the economy.

While this is good news, it also brings risks of inflation as more people have more money to spend, as well as of another increase in interest rates in order to deal with inflation.

Some analysts, however, are skeptical that the job gains hold a high risk of inflation. Data shows consumer price inflation at an annual rate of 2.4 percent in the March quarter. This is well within the central bank’s target of 2.0 to 3.0 percent inflation.

Discuss this in the Finance Markets forums

Story link: Australian economy creates jobs