Jobs growth enjoys record surege in Feb

Australia has notched up its strongest jobs growth in 13 years, but the employment spurt may reduce the chances of more interest rate cuts.

Total employment surged by 71,500 in February - the largest monthly increase since July 2000.

But the unemployment rate remained at 5.4 per cent as a large number of people re-entered the workforce, figures released by the Australian Bureau of Statistics showed on Thursday.

CommSec chief economist Craig James said while there have been headlines about a small number of companies announcing job cuts, small-to-medium sized firms were hiring.

"The latest figures show that businesses are still more inclined to hire part-time workers and contract staff than take on full-time staff," he said.

"That is likely to change over 2013 as firms get more confident about the outlook for their businesses and about the broader economy.

"The people getting jobs probably prefer full-time work to part-time work, but it still means there is extra spending power for retailers to tap."

In February, full-time employment increased by 17,800, while there were 53,700 part-time jobs created.

Mr James said it was a safe bet that the Reserve Bank of Australia will keep the cash rate steady at three per cent at its April 2 board meeting, with financial markets pricing in only a five per cent chance of a rate cut.

St George chief economist Hans Kunnen said the RBA would be in no hurry to cut the cash rate in the next few months.

"The question is whether the strength in the labour market suggested by today's data will be sustained," he said.

"Confirmation in future labour force reports will be required before we take our call for a June rate cut off the table."

Mr Kunnen said the big surge in employment was good news for the economy, even though most of it was in part-time jobs.

"The spending power of full-time workers is generally greater than that of part-time workers," he said.
"However the sheer numbers of new part-time workers may indicate that many households now have an extra income earner.

"The retail sales figures for March and April will bear watching."

HSBC Australia chief economist Paul Bloxham expects the unemployment rate to stay below 5.5 per cent for the remainder of 2013, edging down in the second half of the year.

"This survey helps add further weight to our view that the soft patch in the economy is probably behind us," he said.

"The housing market is recovering, house prices are rising, consumer sentiment has bounced and equity markets are up."

Mr Bloxham repeated his forecast that the RBA won't be cutting the cash rate for the foreseeable future.
The participation rate - people looking for work, in work or ready to start work - was 65.3 per cent in February, up from 65.0 per cent in January.

 ninemsn.com.au 14 Mar 2013

Another blatant government lie, supported by the corporate media.

Publishing lower then actual jobless rate, has many benefits to the banking and financial community.

The corporate media being the government 'lap dog' perpetuates the government lies.

The more accurate figure in closer to 9.7%.

The corporate media has no intentions of unmasking this government lie, as the implications are literally worth billions to the Australian economy.

A blatant lie proudly supported by the lap dog corporate media.