FED: Unemployment drops to lowest level since 1990

AAP General News (Australia)
08-12-1999
FED: Unemployment drops to lowest level since 1990

By Rosalind Mathieson

CANBERRA, Aug 12 AAP - Australia's unemployment rate hit a nine year low of 7.0 per cent in
July as the job market continued to show further signs of improvement.

The unemployment rate is now at its lowest level, seasonally adjusted, since July 1990.

Australian Bureau of Statistics (ABS) figures showed total employment rose by 17,800 in
July with just under 8.8 million people now in work.

It follows strong job gains in June, suggesting Australia's recent economic growth may
finally be kicking into the jobs market.

The data, along with improved gold prices, spurred the Australian dollar nearly half a US
cent higher.

At midday the Australian dollar was trading at 65.24 US cents, from 64.83 US cents at
yesterday's close.

The market had expected the jobless rate to remain steady at June's 7.2 per cent.

But it was not all good news, with the participation rate dropping slightly to 63.0 per
cent.

Employment Minister Peter Reith insisted the drop in participation did not mean the number
of disillusioned job seekers had increased.

He argued instead that falls in official interest rates had meant less women had to join
the workforce.

"The (rate) reductions have really taken pressure off the household budget and as many
women during the early 1990s were forced into the workplace trying to make ends meet in the
family budget, those interest rates having come down has really given people more choice than
they had," he told ABC radio.

Mr Reith said the government wanted to do better, but would not put a number on any
improvement.

"Today's results continue the strong performance of the labour market under this
government," he said in an earlier statement.

"Needless to say these are only one month's figures and more work needs to be done to
consolidate the gains made to date and further strengthen employment growth."

The ABS found the number in full-time employment increased by 7,200 in July to 6.49 million
while part-time workers rose by 10,600 to 2.29 million.

Unemployment fell by 18,500 to 661,100, with the number of people looking for full-time
work easing by 33,300 to 482,100.

Youth unemployment dropped from 23.0 per cent 21.4 per cent in July, seasonally adjusted.

The jobless rate fell in all states except Victoria, and was steady in Western Australia.

In trend terms, the unemployment rate remained steady at 7.2 per cent.

AAP rmm/mfh/ah/br

KEYWORD: JOBS LEAD

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