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Australian economy shows surprise job increase
Thu, May 07, 2009
AFP

SYDNEY, May 7, 2009 (AFP) - Australia's economy notched up a surprise increase in jobs in April, with unemployment falling 0.3 percent, official data showed Thursday.

There were 27,300 more people in work during the month than in March, according to the Australian Bureau of Statistics, which said the unemployment rate had fallen from 5.7 percent to 5.4 percent.

The drop contrasts with analyst predictions of a surge in unemployment to 5.9 percent.

A total of 49,100 full-time jobs were created, while the number of part-time positions shrank by 21,800.

The overall increase in jobs bucked a global trend, as economies contract amid a worldwide economic downturn.

Australia's jobless rate had risen 1.8 points since hitting a 34-year low of 3.9 percent in February 2008.

Prime Minister Kevin Rudd and central bank chief Glenn Stevens have both conceded Australia is in recession, after the economy recorded its first quarter of negative growth for eight years in December.

Growth figures for the March quarter, due early June, are expected to confirm a recession, and the government has warned the economy will be operating at about seven percent below capacity by mid-2010.

Treasurer Wayne Swan reportedly told provincial leaders last week the national budget for the 2009-2010 financial year would predict negative growth of 0.5 percent and unemployment "in the mid to high eights".

That marks a sharp downward revision of Canberra's February forecast, which estimated growth at 0.75 percent and unemployment at seven percent for 2009-2010.

 

 
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