Unemployment low and steady, even as jobs grow



The jobless rate remained steady in June with the Australian Bureau of Statistics announcing an official national unemployment rate of 5.1 per cent—the lowest rate in 18 months.

The result was better than expected. Employers added 45,700 jobs in June – far above the 15,000 new jobs that had been projected. Seasonally adjusted employment stands at a record high of 11,100,700.

Full-time employment rose by 18,400 over the month (the 10th consecutive monthly increase) to stand at a record high of 7,794,700 in June, while part-time employment increased by 27,500 to stand at 3,306,000.

Meanwhile, the Organisation for Economic Cooperation and Development has released its annual review of employment across its 31 member countries. It predicts Australia is in for continued job growth while unemployment in many other countries has peaked although Ireland looks set for continued long term unemployment.

The OECD report shows 17 million people have become jobless since the Global Financial Crisis, with the unemployment rate across the advanced world rising to 8.7 per cent.

Unemployment currently stands at 10.0 per cent in the Euro zone, 9.9 per cent in France, 9.5 per cent in the US, 8.1 per cent in Canada and 7.8 per cent in the United Kingdom.

Back in Australia economists predict a growing skill shortage.

“[The ABS results] underscores not only the strength of the labour market but also the increasing tightness of the labour market,” RBC Capital Markets economist Su-Lin Ong told The Australian.

JPMorgan economist Stephen Walters said: “An unemployment rate close to 5 per cent is basically full employment.

“We’re running out of people and that means wage pressures and pressure on the RBA for more tightening.”

The ABS figures follow the release of two private-sector surveys this week both showing job growth.

The ANZ survey showed the total number of job advertisements in June rose 2.7 per cent on May results.

The Advantage Job Index (formerly the Olivier Index) measuring the number of job ads on the net revealed a mixed picture.

In the year to June, admin, clerical and office support roles increased by 81.83 per cent growth.

Advertising & media jobs increased by 46.23 per cent in the year to June, transport 44.09 per cent, legal 8.67 per cent education 3.7 per cent and healthcare up a tiny 0.6 per cent while accounting jobs were—2.47 per cent compared to a year ago.

CareerOne.com.au, July 8, 2010.