Australian employers added jobs in August, indicating record-low interest rates, a falling currency and weak wage growth is encouraging hiring. Employment rose by 17,400 from July; economists forecast a 5,000 increase
The jobless rate dropped to 6.2 percent; matching economists’ estimates while full-time jobs rose 11,500; part-time employment increased 5,900 and participation rate, a measure of the labor force in proportion to the population, fell to 65 percent from 65.1 percent; matching predictions.
The report adds to increasing impetus in the housing construction and tourism industries that are soaking up workers surplus to requirements at mine sites where an investment boom is winding down. Still, a forecast decline in business spending and falling commodity prices are damping the economic outlook and prompted the central bank to cut rates twice this year to a record low 2 percent.
The Australian dollar traded at 69.94 U.S. cents at 12:16 p.m. in Sydney, from 69.52 cents before the data was released.