Job losses may end interest rate rises

News

Job losses may end interest rate rises

Seasonally adjusted employment fell by 19,700 in May, but the unemployment rate remained the same at 4.3% — pushing speculation that the Australian economy has slowed and there may be no need for further interest rate rises.

WantToReadMore

Get unlimited access to all of our content.

Seasonally adjusted employment fell by 19,700 in May, but the unemployment rate remained the same at 4.3% pushing speculation that the Australian economy has slowed and there may be no need for further interest rate rises.

Industrial Relations Minister Julia Gillard said almost 230,000 jobs had been created over the last year.

In trend terms, employment continued to increase and reached 10,705,300 in May. Employment over the past year grew at an annual pace of 2.2%.

Constraint on business

Gillard said businesses around the country continue to report ongoing skill shortages, particularly in the resource-rich States, as a major constraint to growing their business.

She said the Federal Government is committed to investing $1.9 billion in 630,000 new training places over the next five years, with the first 20,000 places already available under the Productivity Places Program. More than 700 of those will graduate by the end of this month.

Greg Evans, Director Industry Policy and Economics, at the Australian Chamber of Commerce and Industry (ACCI) said the seasonally adjusted labour force figures show that unemployment has risen from 4.0% to 4.3%since February 2008. Additionally, employment growth has slowed from 3.0% to 2.2% over the same timeframe.

Breathing room

‘ACCI believes that this further sign of moderating growth should give the RBA breathing room in terms of future interest rate increases,’ Evans said.

Julie Bishop, Shadow Minister for Employment, Business and Workplace Relations, said Prime Minister Kevin Rudd must explain the reasons behind the Budget forecast that 134,000 jobs will be lost in Australia by June next year and identify the sectors of the economy that can expect to be hardest hit by the policies of his Government.


Related

Unemployment and employment both up: ABS

 

 
Post details