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Jobless rate at 29-year low

EMPLOYERS took on an extra 12,700 workers in July, extending the extraordinary boom in employment into its llth month.

Since August last year, the workforce has grown by 374,100 positions, or 3.9 per cent.

The unemployment rate has dropped from 5.6 per cent since then, reaching 4.99 per cent in July - the lowest level in 29 years.

Unemployment dropped below 4.9 per cent in New South Wales last month, for the first time since 1981. It is now below 5 per cent in every state except Victoria and Tasmania. Unemployment edged higher in Victoria last month to 5.5 per cent, while it remains at 5.8 per cent in Tasmania.

The continued growth in the workforce in Australia has con-founded economists at Treasury, the Reserve Bank of Australia and the private sector, where slower economic growth had been expected to result in fewer jobs.

"The run of strong employment outcomes continues to surprise, given the slowing in the economy," UBS chief economist Scott Haslem said.

The official figures show that over the past year, there have been 229,300 new full-time jobs and 127,100 part-time positions.

The growth has been unequally distributed around the country, but all states are enjoying some of the gains. The number of people with jobs has risen by 6.4 per cent over the past year in Western Australia, which is enjoying a resources boom, and 5.3 per cent in Queensland.

These states also have high levels of participation in the workforce, with 68.3 per cent of West Australians and 66.9 per cent of Queenslanders either in work or actively seeking it.

Victoria and South Australia have both had increases of about 3.3 per cent in their workforce, while New South Wales and Tasmania have lagged with rises of 2.2 per cent. In these states, between 62 and 64 per cent of the popula-tion either has a job or is looking for one.

CommSec chief economist Craig James said the strength of employment was making people feel more secure about their job prospects.

New figures show that 25 per cent of the unemployed left their last job voluntarily. This is almost double the level of a decade ago.

"Job security is at the best levels in a generation, giving people confidence to buy homes

the future," Mr James said.

Commonwealth Bank senior economist John Peters said he expected the job market to re-main in good health,; with the level of job vacancies suggesting employment would continue to grow at a rate of between 10,000 and 15,000 positions a month.

He suggested there was a virtuous cycle at work.

"More people in jobs and low unemployment are positive for consumer sentiment, and this will help underpin consumer spending ahead, supporting overall GDP growth," Mr Peters said.