Australian jobless rate in surprise drop
Australia was the only advanced economy to dodge recession during the global financial crisis, when unemployment peaked at a shallow 5.8 percent, and Thursday’s result is the lowest since July 2011.
Australian unemployment posted a surprise drop to 5.1 percent Thursday with 46,300 jobs created in January — quadruple forecasts at a time when banks and airline have announced lay-offs. The Australian Bureau of Statistics said both part-time and full-time employment increased in January, driving unemployment down 0.1 percentage point to a seasonally-adjusted 5.1 percent.
The Australian dollar soared to 107.38 US cents from 106.81 on the upbeat result, which significantly overshot analyst forecasts of 10,000 new jobs and unemployment of 5.3 percent.
It came as national airline Qantas unveiled at least 500 job cuts Thursday as profits plunged 83 percent in the first quarter, while Australia’s banks have also this week flagged hundreds of sackings as global headwinds grow. ANZ on Monday slashed 1,000 jobs, Westpac is set to axe 550 positions and the local arm of the Royal Bank of Scotland will lose 170 workers.
Canberra expects the jobless rate to hit 5.5 percent in mid-2012, compared with 8.3 percent unemployment in the United States and a record 10.4 percent in the eurozone.