Home > Our Publications > Australian Outlook> 2000 > November

THE unemployment rate fell to 6.3 per cent in September, seasonally adjusted, equal to its lowest in 10 years, and Federal Treasurer, Peter Costello predicted the rate could fall below 6 per cent.
Youth unemployment also reached a 10-year low, falling from 20.5 per cent to 19.6 per cent.
The Treasurer said the jobless rate would fall below the Budget forecast of 6.25 per cent by next June if the economy kept growing at the present rate of about 4 per cent.
The unemployment rate fell from 6.4 per cent in August to 6.3 per cent in September, the lowest since April 1990.
The Bureau of Statistics figures reaffirmed the picture of a strong labour market and solid economic growth, said HSBC senior economist Anthony Thompson, a view repeated by Mr Costello.
"More than 800,000 new jobs have been created in the Australian economy since the Government was elected in March of 1996," Mr Costello told parliament.
But the figures also show a decline in overall employment levels, with a 30,500 fall in the number of people employed, the first fall in eight months and only the second in 22 months.
Economists said the job figures were distorted by the effect of the Olympic Games, which had reduced both the numbers of people with work, and those seeking work.
The fall in youth unemployment was another example of the increasing efficiency of the economy, said Commonwealth Bank chief economist Craig James.
Unemployment was steady in New South Wales at 5.5 per cent and up 0.1 per cent in Victoria to 6.3 per cent South Australia was down 0.1 per cent to 7.5 per cent, Western Australia down 0.5 per cent to 5.9 per cent and Tasmania down 0.2 per cent to 9.8 per cent.
There were 30,500 fewer jobs over the month but a decline in the participation rate, from 64 per cent to 63.7 per cent, pushed unemployment down overall.
The Olympics are thought to have temporarily disrupted recruiting activity around the country.
Treasurer Peter Costello said job gains could exceed budget forecasts if the economy continued to perform at its current rate.
"It's my belief that if the Australian economy continues to grow at around these levels of 4 per cent, then we will not only achieve the budget forecast of 6.25 per cent unemployment by June of next year, we could actually do better than that," he said.