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Full-time jobs boost lifts recovery hopes

Economists say the strongest back-to-back monthly rise in full-time employment in 29 years gives hope jobs growth is setting in.

Continuing strength in full-time employment has strengthened hopes of a turnaround in Australia's jobs market.

The unemployment rate was 5.6 per cent in June, unchanged from a revised May figure, the Australian Bureau of Statistics said on Thursday.

The total number of people with jobs rose by 14,000 in the June, with full-time employment up by 62,000 and part-time jobs down by 48,000.

CommSec chief economist Craig James said 115,400 full-time jobs were created in May and June combined, the biggest back-to-back gain in 29 years.

The Australian dollar spiked on the news, hitting 79.89 US cents, before easing throughout the afternoon to trade at 79.25 US cents by 1700 AEST.

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UBS economists said the data showed employment remains strong and supports the Reserve Bank's positive outlook.

"But, the onus is on jobs and wages to lift to avoid slower consumption," a UBS research note said.

RBC analyst Michael Turner said the Reserve Bank had already noted diminishing downside risks to its labour market outlook.

"Today's data will likely add to that confidence and points to a more upbeat set of communication in coming days," he said.

Mr Turner said improvements in full-time jobs numbers and the number of hours worked - up 0.5 per cent for the month - contributed to "clear and growing signs that some of the spare capacity available within the pool of employed workers is being eroded".

ThinkMarkets senior market analyst Matt Simpson said the job numbers were largely in line with economists' expectations.

"As part-time employment weighed heavily on total jobs and full-time employment increased, markets took it as a healthy employment set," he said.


2 min read

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Source: AAP



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