In some surprise and welcome news, the unemployment rate fell from 5.7 percent to 5.4 percent in April.
Economists have long been predicting the unemployment rate will continue to rise over the next year, reaching as high as 7 percent by 2010.
However, data from the Australian Bureau of Statistics shows total employment increased by 27,300 jobs to 10,798,900. Full-time employment increased by 49,100 to 7,672,700, and part-time employment decreased by 21,800 to 3,126,200.
Economist Matt Robinson from Moody’s Economy said the result highlights the economy boosting measures implemented by the government and the RBA are working.
“You’ve got to take your hats off to policymakers, both government and the central bank, that have taken aggressive actions that look as if they’re working,” he told The Age.
On a state breakdown, the unemployment rate eased in New South Wales from 6.8 percent in March to 6 percent in April. Victoria remained steady on 5.6 percent, Queensland’s rate increased by 0.1 percent to 4.9 percent; South Australia fell from 5.9 percent to 5.5 percent, and in Western Australia the unemployment rate dropped from 4.9 percent to 4.5 percent.
The results signal Australia is performing better than expected and a recovery may not be very far off.
