SYDNEY - Australian employment gained three times as much as forecast in December, capping the strongest year of jobs growth since 1989. The nation's currency rose on expectations the central bank may increase interest rates.
Employment climbed 44,600 after advancing a revised 43,000 in November. The unemployment rate
was unchanged at a 30-year low of 4.6 per cent, the Bureau of Statistics said yesterday.
Employment rose 302,000 in 2006, the largest increase in 17 years, the report showed.
A 30-year-low jobless rate may stoke wages growth and inflation, which has breached the Reserve Bank's target for two successive quarters, forcing Governor Glenn Stevens to add to last year's three rate increases. Reports this week showed consumer confidence rose to a 17-month high, exports gained for a third month and building approvals surged in November.
"The economy keeps generating strong jobs growth, which is keeping the pressure on the Reserve Bank," said Michael Thomas, head of economics at ICAP Australia in Sydney. "This will have more people talking about the chance of a February interest-rate increase."
Australia's Army can't find as many as 1000 engineers, tradespeople and technicians it needs because potential recruits are being lured by higher salaries in the mining and construction industries, the Australian newspaper reported this week.
Annual inflation was 3.9 per cent in the three months ended September 30, the second consecutive quarter it has breached the central bank's target band of between 2 per cent and 3 per cent.
The number of full-time jobs rose 17,700 in December. Part-time employment gained 26,900.
About 10.3 million of Australia's 20.7 million people are employed.
Vacancies advertised in newspapers and on the internet jumped a record 12.1 per cent in December, ANZ Banking Group reported this week.
- BLOOMBERG
