The latest report issued by the Australian Bureau of Statistics in Sydney states that the jobless rate has dropped from 5.8 percent to 5.6 and the number of employed people is said to have advanced by 9,100 to 11,645,800 in September.
The two year interest rate cutting cycle is obviously boosting demand, according to an article featured on Bloomberg.
Craig James, a senior economist at a unit of Commonwealth Bank of Australia said “The chances of another rate cut this cycle continue to recede. The main hope of another rate cut lies with an exceptionally strong Aussie dollar.”
The latest jobs data and improved poise are considered a welcomed boost for Tony Abbott’s coalition which promised to lower taxes and reduce red tape in order to offshoot the $1.5 trillion economy following their election on September 7th.
This latest report reveals an increase of 5,000 new full-time jobs and another 4,100 part-time jobs in September. Also, the new results show a drop in Australia’s participation rate (a measure of the labor force in proportion to the population) from 65 percent to 64.9 percent, which in turn has resulted in a significant upwelling of business confidence.
RP Data-Rismark Home Value Index reveals a rise of 3.7 percent in home prices in the biggest cities in Australia, with Sydney in the lead as demand driven by low rates meets a lack of supply. SQM Research Pty estimates a rise up to 11 percent on average in 2014.
In a statement issued on September 3rd, Coles supermarkets announced that another 4,300 jobs are to be created during this fiscal year only. These new job opportunities come about as a result of the investment of overA$300 million in around 150 new and improved supermarkets, liquor and Coles Express stores across the nation.
Australia’s leading retailer, Woolworths Ltd., is said to build up its new Masters hardware chain with Lowe’s Cos.
Good news keep piling up as estimates compiled by McKinsey & Co. Inc. say that budget revenues will receive a much needed boost by A$11 billion a year from 2015 to 2025 thanks to the ten liquefied natural gas projects across the nation, which in turn will result in the addition of 2.6 percent to Australia’s gross domestic product.