Longest Run Of Jobs Growth In 23 Years Has Taken The Unemployment Rate To 5.4 Per Cent

The longest run of jobs growth in 23 years has taken the unemployment rate to to 5.4 per cent, its lowest level since 2013.

Australian employment rose for a 13th straight month in October, the longest stretch of gains since the early 1990s, while the jobless rate dipped to its lowest in over 4-1/2 years.

The total number of people with a job rose by 3700 in October, the 13th consecutive monthly gain, which is the longest stretch of growth since 1994.

October’s gains were driven by full-time employment, which rose by 24,300, offsetting a fall of 20,700 part-time positions.

Full-time jobs have increased by 297,900 in the past year, while part-time positions have grown by 57,800, resulting in a rise in the hours worked by those in the work force.

St George senior economist Janu Chan said a fall in underemployment, which remains at elevated levels, will spark wages growth.

“If the labour market continues to improve at this rate, spare capacity will eventually be absorbed,” she said.

“However, the current unemployment rate is still suggesting that spare capacity remains, and would need to fall further before there is a strong prospect of wage and inflation picking up.”

Troy Gunasekera