Australian Economy Adds More Full-Time Jobs

Australian economy added more full-time jobs in June, even though unemployment edged up to 5.8 percent from 5.7 percent recorded in May, the labour market remains strong.

The economy added 38,400 full-time jobs, while part-time employment fell by 30,600. Bringing total job created to 7,900 jobs, according to the Australian Bureau of Statistics.

Participation rate climbed to 64.9 percent in the same month.

The economy continues to thrive on strong domestic industries like construction, tourism and education, which help reduce unemployment among miners as their industry winds down due to weak exports.

Although, investment outlook remains weak and could daunt progress as the current gain in the Aussie dollar could hurt the competitiveness of the service sector and forced the Reserve Bank of Australia to lower interest rate by another 25 basis points.

Last week, RBA governor Glenn Stevens said low interest rates have been aiding the economy — though gain in the currency could hinder current outlook. This is why continuous gain in Aussie dollar could necessitate monetary action.

The central bank believes low interest rates allows commercial banks substantial liquidity to stimulate the market.

Aussie dollar rose to 76.44 U.S. cents at 5:36 p.m. in Sydney, from 75.20 cents opening price.

The result was in line with analyst’s expectation.