Unemployment dives to 5.9 per cent in October as 58,600 new jobs created
Australia's unemployment rate has dived to 5.9 per cent driven by a surprisingly strong growth in new jobs.
In seasonally adjusted terms the number of jobs increased by 58,600, a substantial increase on the market forecast of 15,000.
Full-time employment increased by 40,000, while part time jobs were up 18,600.
The number of people looking for jobs also increased with the participation rate up 0.1 per cent to 65 per cent.
Almost 200,000 jobs have now been created over the past year, the biggest annual job gain recorded in more than four years.
ANZ economist Justin Fabo said the numbers showed startling strength.
"While undoubtedly there is some noise in today's data, underlying jobs growth has been strong for a run of months," Mr Fabo said.
"Much of the improvement in unemployment has been among 15 to 24 year olds which had previously borne the brunt of labour market weakness.
"We are always wary of reading too much into the monthly labour force 'lottery', but even looking through the noise it's hard not to conclude that current labour market conditions in Australia are strong.
"In isolation this report makes a rate cut in February more difficult to achieve."
That sentiment put a rocket under the Australian dollar.
J.P. Morgan's Tom Kennedy agreed the jobs data effectively knocked out the possibility of the Reserve Bank cutting rates at its December meeting.
"It is also important to note that Australia's other data have improved or stabilised of late, with building approvals, retail sales and trade all decent," Mr Kennedy said.
"The momentum in the data bodes well for the upcoming third quarter GDP outcome, with real growth expected to record a solid rebound following a disappointing outcome in the June quarter."
New South Wales lead the way with unemployment falling from 5.8 per cent to 5.5 per cent, while Victoria had an even more dramatic fall from 6.3 per cent to 5.6 per cent. South Australia still has the nation's highest unemployment at 7.5 per cent, down from 7.7 per cent in September, while Queensland's jobless number edged down from 6.3 per cent to 6.2 per cent. However the jobs market in Western Australia deteriorated with unemployment rising from 6.1 per cent to 6.4 per cent, while Tasmania's unemployment leapt from 6 per cent to 6.5 per cent. The Northern Territory and ACT remained relatively flat at 4.5 and 5.1 per cent respectively.
Aggregate hours worked was also up 1.2 per cent over the month, while the number of people looking form jobs also increased with the participation rate up 0.1 per cent to 65 per cent.
Source: ABC News