Fed: Unemployment at nine year low of 6.7 per cent

AAP General News (Australia)
12-09-1999
Fed: Unemployment at nine year low of 6.7 per cent

EDS: Pls close off earlier after second take



CANBERRA, Dec 9 AAP - Unemployment is at its lowest level in nearly a decade, with
the jobless rate plunging to 6.7 per cent in November.

However, the fall in the seasonally adjusted jobless rate was due to 38,000 people
dropping out of the labour market in November, with those in work actually falling 6,200.

This is the first time employment has fallen since March.

It also is the first time the jobless rate has dropped below seven per cent since 1990,
and means unemployment has already bettered the forecast it made just last month of 6.75
per cent by June next year.

Workplace Relations Minister Peter Reith said the figures were a direct result of the
government's economic and workplace reforms.

"This is the best figure in a decade," he told reporters.

"It is confirmation that the government's reforms have been working."

However, he admitted the sharp improvement was due to a drop in the participation rate.

The volatility in the monthly figures did not mean the government would now better
its revised budget forecast for the jobless rate, he said.

"I don't take too much from one month's figures," he said.

"I think all of this tells you that we are basically on track."

He also played down fears the dwindling pool of unemployed could put pressure on wages
and inflation.

"The inflation story today is pretty good in the economy," Mr Reith said.

"We would hope that that will continue and there's no reason why it shouldn't."

The Australian Bureau of Statistics (ABS) said full-time employment rose by 3,400 in
November, while part time employment fell by 9,800.

The number of people looking for work fell by 32,000

The jobless rate in New South Wales fell to 5.6 per cent, Queensland (7.8 per cent)
and South Australia (8.0 per cent).

It was steady in Western Australia on 6.8 per cent, rose slightly in Victoria to 6.9
per cent and soared in Tasmania to 9.9 per cent.

Meanwhile, Centrelink figures, which are not seasonally adjusted, showed more than
11,000 people dropped off the nation's dole queues in November.

The number of jobseekers on the dole or Youth Allowance fell 2.1 per cent or 11,551 to 550,089.

The fall was mainly driven by the number of long-term jobseekers - those registered
as unemployed for more than a year - falling 1.8 per cent (6,444) to 344,164.

The number of short-term jobseekers on benefits fell 2.4 per cent (5,107) to 205,925.

AAP ss/rft/mfh/jm/bwl

KEYWORD: JOBS LEAD

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