Positive signs as jobless rate falls again

The jobless rate has dropped again as Australia recorded the largest back-to-back monthly employment gains in 28 years.

The economy is ending 2015 on a positive note.

Following on from last week's relatively upbeat economic growth figures, the jobless rate has dropped to its lowest level since April last year, while manufacturers appear to be heading into the new year with a spring in their step.

New figures show the unemployment rate unexpectedly fell to 5.8 per cent in November after an equally surprising drop to 5.9 per cent the previous month.

The number of people employed surged by 71,400, building on a revised 56,100 jump in October - the largest back-to-back increase in 28 years, according to Commonwealth Securities.

Prime Minister Malcolm Turnbull said the results are "something to be very pleased about".

Employment Minister Michaelia Cash was also encouraged by a rise in the participation rate to 65.3 per cent.

"Australians are putting their hands up and saying, `We want to work'," she told reporters in Perth.

Opposition Leader Bill Shorten also welcomed the figures, but said there will still be lots of people who won't be sharing the Australian dream this Christmas.

"It's important that as this society hits 2016 that in our pursuit of growth we don't forget fairness as well," he told reporters in Launceston, Tasmania.

Economists were left scratching their heads having predicted a small employment fall and a rise in the jobless rate to six per cent, and having been equally puzzled by the previous month's outcome given its strength.

"At what point do we stop calling the strong job figures a fluke?" CommSec chief economist Craig James said in a note to clients.

"Ideally, we should be celebrating the good news on jobs, rather than trying to justify why the figures could be wrong."

The latest Australian Chamber of Commerce and Industry-Westpac industrial trends survey also showed manufacturing conditions have improved strongly over the past year, albeit coming off the boil slightly in the final three months of the year.

"Manufacturers are feeling positive with their assessment of general business conditions in the next six months, the highest since 2009," chamber boss Kate Carnell said in a statement on Thursday.

The survey's composite index for conditions moderated 3.2 points to 53.5 points in the December quarter, but remained comfortably above the historic average of 49 points.

The expectations for the composite index rose one point to 60.8 points.

Westpac senior economist Andrew Hanlan said manufacturing had been a key beneficiary of low interest rates and a lower Australian dollar.

"The sharp drop in the Australian dollar is reshaping the economy," he said.


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Source: AAP



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