SYDNEY, Oct 11 (Reuters) - Australian employment rose bymore than expected in September, sending the local dollarhigher, while the jobless rate also rose to 5.4 percent as morepeople joined the workforce.
Thursday's data from the government showed jobs rose by aseasonally adjusted 14,500 in September.
- Sept employment +14,500 mth/mth, seasonally adjusted
(Reuters poll: +3,750)
- Sept full-time employment +32,100, part-time -17,700
- Sept unemployment rate 5.4 percent, s/adj (poll 5.3)
- Sept participation rate 65.2 percent, s/adj (poll 65.0)
- August's unemployment rate unrevised at 5.1 pct
- For a brief data table click on
MICHAEL BLYTHE, CHIEF ECONOMIST, COMMONWEALTH BANK OFAUSTRALIA
"It doesn't make the story any clearer, with a decent risein employment, but unemployment up as well. The overallimpression when we smooth all these trends out is it's still apretty soft labour market overall.
It's still a case of easing bias here. The Reserve Bankstill expects unemployment to rise. They obviously interpret thelabour market now as soft as they've said. Given some of theglobal concerns that are still playing out the risks still pointto lower rates. We think we'll see another move (down) inNovember."
The Australian dollar
rose more than a third of acent to $1.0258 on the data. Interbank futures
imply rates at 3 percent by Christmas with a better than evenschance of a cut next month.
The Australian Bureau of Statistics Web site is:
- The median forecast had been for slight a rise of 3,750 inSeptember employment. Estimates for this volatile series rangedfrom a fall of 8,000 to an increase of 20,000.
- The jobless rate was seen rising to 5.3 percent, followingAugust's surprise dip to 5.1 pct, with a range of 5.2 percent to5.3 percent.
- The jobless rate has been remarkably steady around 5.2 pctfor months now even though employment growth has been subdued.That was partly due to an unusually large fall in theparticipation rate, which has dropped a full percentage pointsince late 2010 to stand at a five-year low of 65.0 pct.
- RBA policymakers suspect the fall in participation meansthe labour market is softer than implied by the jobless ratealone, which is a major reason they chose to cut interest ratesthis month.
- Most leading indicators of employment point to only modestgrowth ahead and a likely gradual rise in the jobless rate,which would add to the case for further monetary stimulus.
(Reporting by Wayne Cole)
Keywords: AUSTRALIA ECONOMY/