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Australia’s Full-Time Employment Surges Most in Nearly 30 Years

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  • Australia’s Full-Time Employment Surges Most in Nearly 30 Years

Australian employment surged in March, underpinned by the biggest gain in full-time jobs in almost 30 years, as a recovering jobs market joined a spike in business conditions to suggest a stronger economy.

  • Employment rose 60,900 from February; economists forecast 20,000 gain
  • Jobless rate held at 5.9% as economists predicted, as more people searched for work
  • Full-time jobs soared by 74,500, the biggest increase since December 1987; part-time employment fell 13,600
  • Participation rate rose to 64.8% from 64.6%; economists forecast 64.6%
  • Aussie dollar rose on report, buying 75.68 U.S. cents at 12:45 p.m. in Sydney, compared with 75.39 before its release.

Big Picture

Signs of recovery in Australia’s labor market together with the best business conditions since 2008 suggest the Reserve Bank of Australia’s forecast of accelerating growth is on track. It also signals the central bank’s record-low cash rate of 1.5 percent since August appears to be encouraging investment and hiring by businesses outside the resources industry.

Still, Australia’s economy is split. The east coast cities of Sydney and Melbourne are investing in infrastructure, boosting jobs and experiencing population gains that have helped send house prices soaring. Elsewhere, particularly in the west and north where a mining investment boom has almost unwound, people have been leaving, unemployment has climbed and property prices have fallen.

Economist Takeaways

The surge in employment “should be taken with a pinch of salt,” said Paul Dales, chief economist for Australia at Capital Economics Ltd. “The fact that it was accompanied by a 64,900 leap in the size of the labor force suggests that the rise in employment has more to do with survey sampling issues than anything else.”

“It is a case of the trend is your friend. The seasonally adjusted job figures are clearly volatile,” said Craig James, a senior economist at the securities unit of Commonwealth Bank of Australia. “But the trend data smooths out the bumps and shows employment rising by 16,500 in March with the jobless rate at 5.8 percent. That seems to line up better with all the other economic indicators and surveys.”

“The RBA is concerned about the weak underbelly of the labor market, but today’s trend pick-up in full-time hours worked and employment provide some offset,” said Annette Beacher, head of Asia-Pacific research at TD Securities in Singapore. “Continued improvement in full-time employment trends is supportive for our November RBA rate hike call.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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