Fed: Unemployment at decade low as GST boost part time jobs

AAP General News (Australia)
08-10-2000
Fed: Unemployment at decade low as GST boost part time jobs

Unemployment has plunging to a decade low of 6.3 per cent in July.

But interest rates appear to be on the rise again before the end of the year, with
the surging economy creating more than 75,000 new jobs created in just one month.

Unemployment is now at its lowest level since April 1990.

Prime Minister JOHN HOWARD says he is delighted with the employment figures, saying
his government has created 809,000 new jobs since coming to office.

With job advertisements and skilled vacancies remaining high, Treasurer PETER COSTELLO
says the chances of a further fall in unemployment are good.

However, there are suggestions that the job surge is temporary, due to the Olympics
and the hiring of staff to cope with the GST transition.

Meanwhile, the figures sharply increase the chances of yet another interest rate rise,
with the Commonwealth Bank's MICHAEL BLYTHE saying they will harden views that inflation
risks are firmly skewed to the upside.

And, Mr BLYTHE says another tightening of the monetary-policy screws appears certain
over the next few months.

AAP RTV ss/wz/jn

KEYWORD: JOBS (CANBERRA)

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