Australia's unemployment rate eased to 5.6 percent in September,
retreating from a four-year high with the creation of 9,100 jobs in a
better-than-expected performance boosted by election-related work.
The
seasonally-adjusted jobless rate receded from August's 5.8 percent -- a
level not seen since the global financial crisis as Australia's
mining-powered economy confronts a peak in resources investment due to
slowing commodity prices.
Analysts had expected unemployment to
hold steady at 5.8 percent but a fall in the participation rate --
usually interpreted as evidence of jobseekers giving up on looking for
work -- and a surge in jobs related to the September 7 election meant
the result exceeded expectations.
"The employment numbers last
month and this month have been flattered somewhat by the election," said
National Australia Bank economist David de Garis.
The Australian
dollar bounced from 94.48 US cents to 94.69 US cents after the headline
rate beat forecasts, but analysts said the underlying picture was muted
and unlikely to drive any move in the record low 2.5 percent interest
rate.
"The recent improvement in confidence and stabilisation in
labour market conditions is welcome but is still only tentative evidence
that economic activity is improving from below-trend rates rather than
just stabilising," said economist Justin Fabo from ANZ.
Slowing
growth in key export market China and plunging commodity prices have hit
Australia's key mining sector, with the central bank warning a
decade-long, Asia-driven resources investment boom has peaked.
Australia's
new conservative government has vowed to "reboot" the mining sector by
slashing corporate taxes, but they face a steep task given China's
slowdown and additional commodities supply coming online.
Top
mining firms have taken a major hit, with BHP's annual net profit
slumping 29.5 percent to US$10.88 billion in the year to June and rival
Rio Tinto down 71 percent for the first half at US$1.72 billion.
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