Australia's unemployment rate falls

Australia's jobless rate fell in August as employers took on new staff, helping to power the economy's expansion.

The unemployment rate declined to 5.1 per cent last month, from 5.3 per cent in July, according to the Australian Bureau of Statistics. Analysts had tipped a fall to 5.2 per cent.

The data show that 53,100 full-time jobs were created in August - the biggest monthly increase in more than two years.

The number of part-time jobs dropped by 22,100. That gives a net gain of 30,900.

The latest jobs figures come the same week the Reserve Bank of Australia kept interest rates steady for the fourth consecutive month, amid positive second-quarter economic growth.

Gross domestic product increased 1.2 per cent in the second quarter from 0.7 per cent in the first quarter, data revealed last week showed.

More recent signs of a pick up in demand include home loans data, which rose 1.7 per cent in July, the second positive month in the past three. Australia’s trade balance remained in surplus to the tune of $1.88 billion in July, while building approvals turned positive for the first time in three months.

So far, the strength of Australia’s jobs market has failed to trigger an outbreak of inflation, despite cashed-up companies and a shortage of workers. Second-quarter inflation slipped to 0.6 per cent in the June quarter from 0.9 per cent in March.

- © Fairfax NZ News