Jobs growth continues to pick up pace

The latest employment figures show a continued growth in jobs, sending the unemployment rate down to 5.6 per cent.

Another rise in employment in July shows the jobs market is gaining momentum, economists say.

The number of people with jobs rose by a better-than-expected, 27,900 in the month, as an increase of 48,200 in part-time jobs outweighed a fall in full-time positions of 20,300.

The unemployment rate fell to 5.6 per cent, from an adjusted June figure of 5.7 per cent, the Australian Bureau of Statistics said on Thursday.

Commonwealth Bank economist John Peters says the job market has continued to "pick up some seriously solid momentum", with monthly job growth averaging 33,000 in the past six months.

"The pace of employment growth, and particularly full-time jobs growth, has clearly cranked up more than a few notches as 2017 has progressed," he said.

Mr Peters said July's fall in full-time positions followed the addition of about 118,900 full-time jobs in the prior three months.

"The split between full-time and part-time jobs growth has altered substantially in the past six months or so, and in the right direction towards full-time jobs creation," he said.

Royal Bank of Canada economist Su-Lin Ong said the employment numbers support the Reserve Bank of Australia's forecast of a gradual drop in the unemployment rate over the next few years.

"The RBA will be hopeful that sustained monthly employment generation will eventually translate to higher wages," she said.

The annual rate of wages growth remained at a record low of 1.9 per cent in the June quarter, where it has been since mid-2016.

Ms Ong said employment growth is unlikely to spur an interest rate move from the RBA.

"We remain comfortable with our base case for the RBA to remain on hold for the foreseeable future," she said.


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Source: AAP


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