Australia Adds Record Jobs

Australian employers added a record number of jobs in August, underscoring the central bank’s reluctance to cut interest rates further and sending the local currency higher.

The number of people employed increased by 121,000, led by a surge in part-time jobs, as the statistics bureau said a rotation in its survey group affected today’s figures. The jump in employment compares with the median estimate for a 15,000 increase in a Bloomberg News survey of 28 economists. The jobless rate fell to 6.1 percent from a 12-year high of 6.4 percent.

Domestic demand is being spurred by a pickup in housing after a two-year easing cycle saw the Reserve Bank of Australia cut its benchmark rate to a record-low 2.5 percent. The RBA has this year flagged a period of rates stability as it seeks to avoid a growth gap emerging due to falling mining investment.

Bloomberg

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