"The global economic pressures to which we are now subject, particularly from the end of the China mining boom, are going to impact on growth, impact on employment"
-Prime Minister Kevin Rudd
The number of people employed in Australia unexpectedly fell in July and jobless rate remained at the highest level in almost four years, adding to signs that the end of the mining investment boom will weigh on future employment. While the recent labour market data showed that unemployment rate held unchanged at 5.7% in July, economists estimate that it will hit 6% by the year end. According to the statistics bureau, Australian employers cut payrolls by 10,200 against expectations for a 5,000 rise. The number of full-time jobs dropped by 6,700 in July, while part-time employment declined by 3,500. Participation rate, which indicates the labour force in proportion to the population, decreased to 65.1% in July compared to 65.3% in the previous month. Job advertisements fell for a fifth consecutive month, inching down by 1.1% in July, according to Australia & New Zealand Banking Group.
The Reserve Bank of Australia Governor Glenn Stevens, having expected a softer labour market and below-trend growth, has cut the overnight cash-rate by 2.25 percentage points since late 2011, including 0.25 point cut this month to a historic low of 2.5% as a resource-investment boom wanes.
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