The unemployment rate unexpectedly dropped to 6.6 per cent in December as Australia’s recovery from recession gathered pace.
Australia Bureau of Statistics figures released on Thursday showed a further 50,000 people found work in December and largely full-time positions.
Economists had forecast the jobless rate to ease to 6.7 per cent from 6.8 per cent in November.
It was a further retreat from the 22-year high of 7.5 per cent last July and during the depths of the recession.
The ABS published the data as Prime Minister Scott Morrison was holding a media conference in Gladstone.
“Jobs, jobs and jobs, that’s what we’re about,” he said in immediate response to the report, adding he would want to study the figures before commenting further.
December’s employment rise comprised a 35,700 increase in full-time workers and a 14,300 lift in part-time positions.
It means 90 per cent of the collapse in employment between March and May when the COVID-19 pandemic hit and the economy sank into its first recession in nearly 30 years has now been recovered.
The ABS said while the number of employed people in Australia was 88,000 lower in December compared to March, it was now 784,000 higher than May.
The participation rate of those people in work or seeking employment rose to a record high 66.2 per cent in December, up from 66.1 per cent in November.
“The bounce back in jobs is very welcome and when compared with other countries it confirms that Australia’s economy is a relative outperformer,” BIS Oxford Economics chief economist Sarah Hunter said.
She said recent job ads data suggest demand for labour remains robust, with activity in a number of sectors being underpinned by additional government spending and the rebound in domestic demand.
“We expect further gains to materialise through the first three months of 2021,” Dr Hunter said.
The strength of the jobs recovery also dates both Treasury’s and Reserve Bank’s forecasts.
Only last month Treasury forecast a jobless rate of 7.25 per cent by June this year, while in November the RBA predicted a rate of 7.5 per cent by then.
Economists expect the latest labour force figures will show a continuation of that trend contributing to a further fall in the jobless rate.
Recent strong vacancy and job advertising figures suggest the labour market should see further strength in coming months.
Only last month Treasury forecast a jobless rate of 7.25 per cent by June this year, while in November the RBA predicted a rate of 7.5 per cent by then.
Figures on Wednesday showed skilled vacancies advertised on the internet rose 1.4 per cent in December, the eighth consecutive monthly increase since hitting a record low last April and during Australia’s economic downturn. They now stand 11.1 per cent higher than a year earlier.
Notably, the National Skills Commission’s report showed demand for labourers in December surged 6.3 per cent to be 55 per cent up on the year.
This coincides with a strengthening home building sector, which is being buoyed by low interest rates and government stimulus grants.
Separately, a survey found restaurant owners are more confident coming out of the recession, anticipating home delivery will remain a pivotal part of their business operations in 2021.
The survey of more than 300 restaurant owners, released by take-away delivery firm Deliveroo, found more than half feeling positive about their future business prospects.
More than four in five respondents expected to hire more staff in 2021.
“Last year’s survey saw a nervous sector but just six months later we are all pleased to see a more positive outlook emerge for the year ahead,” Deliveroo CEO Ed McManus said.
