Most of that growth came from part-time work, while 18,400 full-time jobs were created in the month, pointing to an unemployment rate of 5.1 per cent.
That rate shows Australia is getting close to full employment, even with more people entering the workforce, as shown by a rise in the participation rate by 0.1% to 65.2%. Federal Treasury has suggested that full employment is characterised by unemployment at five per cent. However, Craig James from CommSec suggests that number should change to four per cent because of changing demographics especially the ageing population.
This is a trend that is likely to continue with the latest ANZ Job Advertisements series rising strongly in six out of the last eight months. But there may be some side effects from a set of strong jobs numbers. The first relates to higher interest rates, and the second, is a tightening in the job market which may lead to inflationary pressures via wages growth.
On the topic of interest rates, St George Market Economist, Amanda Tan, says the unemployment results reinforces the bank's view that rates are on the way up. She says the risk is to the upside of an August rate rise, if the June quarter core inflation number is stronger than 0.7%.
Although there are suggestions of a two-speed economy, where the jobless rate in Tasmania has risen to 6.5%, while it's below three per cent in both territories and under four in Western Australia, Craig James at CommSec expects the unemployment rate to eventually reach 4.8% by the end of the year, and then further ease to 4.5% by mid 2011. As a result, Craig James is predicting the RBA to lift rates at the end of the year from 4.5% to five per cent.
For those people looking for work, or a change of career, business information research group IBISWorld has done the ground work to find out which sectors are likely to see a pick up in revenue and jobs growth this financial year.
While small at just under $0.5 billion, organic farming is expected to see the biggest revenue growth at 15% with employment growth of two per cent. IBISWorld forecasts that increasing health concerns, a greater awareness of environmental sustainability, higher disposable incomes and greater choice will prompt that growth.
Insurance brokerage, mobile telecommunications carriers and alternative health therapies makes it into the top 5 for 2010/11.
As for where the best jobs growth will be, IBISWorld expects that to come from online information services. Employment growth is predicted at more than seven per cent, while revenue growth should rise 8.7% to just over $1.5billion. IBISWorld general manager, Robert Bryant says consumers are getting an increased proportion of their news and information online, migrating from traditional sources such as print media and television, with advertisers following consumers online.
On the other end of the scale, insulation services will see the biggest contraction in both revenue (-24.1%) and jobs growth (-55.6%). It's a consequence of the abrupt end to the government's subsidy in the sector, which aided growth recently.
An unfavourable exchange rate, the grape glut and greater competition means IBISWorld is forecasting grape growing revenue to contract three per cent, while wired telecommunications, paper manufacturing and video hire outlets round out the bottom five.
