Australia’s Jobless Rate Drops to 5.6%

Australia’s unemployment rate unexpectedly declined in September, adding to evidence a two-year interest rate cutting cycle is boosting demand.

The jobless rate dropped to 5.6 percent from 5.8 percent, the statistics bureau said in Sydney today. That compares with the median estimate for unemployment to hold steady in a Bloomberg News survey of 26 economists. The number of people employed advanced by 9,100.

Central bank Governor Glenn Stevens reduced the overnight cash-rate target by 2.25 percentage points since late 2011 to a record-low 2.5 percent. The jobs data and improved confidence are a boost for Tony Abbott’s coalition, which won office Sept. 7 pledging to lower taxes and cut red tape to spur the $1.5 trillion economy as a China-led mining investment boom crests.


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