Jobs growth ‘strongest in 29 years’

The labour market has held steady with the jobless rate at 5.6  per cent last month and 14,000 positions being created.

Employment Minister Michaelia Cash. Picture: Kym Smith

Australia’s labour market has held steady with the jobless rate at 5.6  per cent last month and 14,000 positions being created, in line with market expectations and off the back of solid gains in full-time work.

Full-time employment increased by 62,000 jobs last month, although this was offset by a reduction of 48,000 part-time positions.

Annual employment growth was running at 2 per cent — its fastest rate since April last year.

The results point to a more muscular jobs market with a total of 154,000 positions created in the four months to June, led ­by an ­increase in full-time positions.

Chief economist for CommSec, Craig James, yesterday noted the rise in full-time employment of 115,400 positions over the past two months was the “strongest back-to-back job gain in 29 years”.

“Aussies should fret less and celebrate more. Our record-breaking economic expansion is showing no signs of ending,” he said. “The jobless rate is near four-year lows. Business is hiring. And the available jobs are full-time, rather than part-time.”

Employment Minister Michaelia Cash seized on the figures, saying the economy was creating about 27,000 full-time jobs a month. “That is a fantastic thing for Australian people,” she said.

In a pleasing sign for business, the ABS Labour Force June survey also pointed to a 0.5 per cent increase in monthly hours worked — a burden mostly shouldered by full-time workers — with Malcolm Turnbull yesterday defending his campaign mantra of “jobs and growth”.

“(It’s) not just a slogan; it’s an outcome,” Mr Turnbull said.

Australian Bureau of Statistics chief economist Bruce Hockman yesterday said full-time employment had increased by about 187,000 people since September last year but was marked by a “particular strength over the past five months”, averaging about 30,000 people per month.

The unemployment rate remained steady — after May’s result was revised up from 5.5 to 5.6 per cent — while the creation of 14,000 positions was slightly below the market expectation of 15,000. The participation rate nudged upwards by 0.1 points to 65 per cent.

Australian Chamber of Commerce and Industry chief executive James Pearson yesterday praised the increase in full-time jobs but said there were still worrying indicators that highlighted the need for pro-growth policies. ‘‘Unemployment has remained steady, but with 728,100 people out of work and 1.1 million people underemployed, today’s result underscores the need to make it easier for businesses to hire and make it easier for them to grow,” Mr Pearson said.

Despite strong jobs growth in recent months, there is a lot of spare capacity in the labour market, with underemployment still running at 8.8 per cent.

Opposition workplace relations spokesman Brendan O’Connor yesterday lamented the “record number of underemployed Australians in this country”.

“We have 1.8 million Australians looking for more work, or just looking for some work ... It’s something the government needs to redress,” Mr O’Connor said.

“It’s also of concern to Labor that the youth unemployment rate has increased from 12.7 per cent to 13.1 per cent.”

The unemployment rate held steady or fell in all states except Queensland, where the labour market remained soft and the jobless rate rose from 6.1 per cent to 6.5 per cent.

In Tasmania, the jobless rate dropped from 6.1 per cent to 5.6 per cent, while in South Australia it fell from 6.9 to 6.6 per cent.