Positive news for rates in jobless figures

The lowest jobless rate in two years has economists predicting interest rates will
stay on hold until mid-2011.
Australia's unemployment rate was a seasonally adjusted five per cent in December,
compared with 5.2 per cent in November, the Australian Bureau of Statistics (ABS)
said on Thursday.
The fall was put down to a drop in the participation rate, rather than the 2300 rise
in jobs.
Full-time jobs rose by 1700 to just over eight million in December and part-time
employment was up by 600 to just under 3.4 million.
"This just further confirms that the RBA is going to be on hold over the next couple
of months, and with what's happening with the floods they will hold back," National
Australia Bank senior economist Spiros Papadopoulos said.
Treasurer Wayne Swan said the jobs growth showed the economy remained strong.
"In 2010, an extra 364,000 Australians gained the security of a job with the ability
to bring home a regular pay packet to their families," Mr Swan said.
"It's a great result for our country and one that sets us apart from the rest of the
developed world.
"The strength of the jobs market can give confidence about our country's economic
outlook as communities and businesses begin the long task of rebuilding from the
floods."
The best performing state was WA (4.4 per cent), followed by NSW (4.6 per cent),
Victoria (4.9 per cent), Tasmania (5.0 per cent), SA (5.6 per cent) and Queensland
(6 per cent).
Jobs Minister Chris Evans said that, as was seen after the Victorian and ACT
bushfires, there would be a short-term jobs boost in the Queensland floods recovery
effort.
"(There will be) a demand for a lot of construction work and that rebuilding process
will no doubt generate jobs, particularly in the construction areas," he said.
Queensland Treasurer Andrew Fraser said his state had recorded 17 straight months of
jobs growth, but more needed to be done to get people back to work.
NSW Premier Kristina Keneally said the 0.4 percentage point drop in the jobless rate
- the lowest since April 2008 - was welcome.
"Since March 2009, more than 182,000 jobs have been created in NSW - this is great
news for the $400 billion NSW economy," she said.



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