For the first time, Australian employment topped 11 million as the economy adds 1,100 jobs per day, most of them full-time and some of them part-time jobs transformed into full-time.

The latest report, published last week, showed that 37,500 full-time jobs were created in April following an upwardly-revised 37,400 in March. In April 3,800 part-time jobs were made full-time, and 9,700 in March.

The unemployment rate rose slightly, from 5.35% to 5.39%, as 40,200 returned to the job market in April. But that increase didn’t worry economists.

“’It’s what you expect to see in the early phases of an upswing,” said Adam Carr, an economist with ICAP Securities.

“During a slowdown people tend to leave the job market or postpone entering it due to the difficulty of finding the job they want. In effect they fall out of the labour market, especially in two-income families.

“As the economy picks up these people feel more optimistic and start looking again. It causes a blip in the unemployment rate but it’s nothing to be worried about.”

Despite the resources and energy surge, the mining companies have added only 9,400 jobs in the past year, as the overall economy added 174,000. A large number of jobs were created in industry sectors that support the mining companies, such as warehousing and administrative services.

However, most jobs were added in the health and aged care industry sectors, as the aging population made these the largest and fastest-growing sectors of the Australian economy.

The rate of job creation since December surged to 3.0% annualised, significantly higher than the 2.5% expected in the new federal budget.

Jobs added since December and the unemployment rate, by the states:
•    Western Australia:15,900 jobs, 4.7%
•    Victoria: 23,500 jobs, 5.3%
•    Queensland: 26,700, 5.6%
•    South Australia: 3,800, 5.6%
•    New South Wales: 28,500, 5.8%
•    Tasmania: 2,700, 5.9%

Roland Randall, a strategist with TD Securities, said this could point to further rate increases by the Reserve Bank. “The very tight labour market is going to result in rising wages which will flow through to inflation pressures.”

But Dr. Philip Lowe, assistant governor of the RBA, hinted last week of a possible pause in the monetary policy tightening should the European debt crisis become worse and threaten global economic stability.

Source: http://www.smh.com.au/