Sharp rise in new jobs recorded in November

Australia’s economy added a better-than-expected 61,600 jobs in November, extending a strong run of employment growth.

The number of people in full-time work rose by 41,900 last month. Pic: AAP

Australia’s economy added 61,600 jobs in November, extending a strong run of employment growth since the start of the year, fanned by upbeat business conditions.

The number of people in full-time work rose by 41,900 last month, while those in part-time work rose by 19,700. Economists expected a further 19,000 jobs over the month.

The Australian dollar rose to US76.64 cents after the data release.

The unemployment rate was unchanged at a seasonally adjusted 5.4 per cent in November, the Australian Bureau of Statistics said. Economists had expected an unemployment rate of 5.4 per cent in November.

The workforce participation rate rose to 65.5 per cent in November from 65.2 per cent in October and a consensus expectation of 65.1 per cent.

The job market has roared in 2017, with 350,000 jobs added since January, the vast bulk of them full-time positions.

Prime Minister Malcolm Turnbull trumpeted his government’s policies after the surge in employment.

“Our policies are restoring confidence to business, and business is responding by investing, creating more jobs, and hiring more workers,” Mr Turnbull told reporters in Sydney.

Still, there is a lot of spare capacity remaining in the labour market, and the job gains have yet to translate into wages growth.

With incomes growth flat and household debt levels at a record high, the Reserve Bank of Australia has kept interest rates on hold all year.

Economists expect the pause at the RBA will extend well into 2018, potentially into 2019.

Job creation has improved across the country, a further signs that the economy is shrugging off a mining investment downturn which has sapped GDP growth for a number of year.

The hiring by firms has occurred in line with an improvement in business conditions and profits.

Dow Jones Newswires