Jobs growth continued in August, with Australia’s unemployment rate falling to 5.1% from 5.3% during August, according to the latest figures from the Australian Bureau of Statistics.
The figures show a total of 30,900 jobs were added during the month, with a rise in full-time employment of 53,100 negating a drop in part-time employment of 22,100.
The figures come after a Reuters poll indicated economists predicted a rise of 29,000, and an unemployment rate of 5.2%.
CommSec chief economist Craig James said in a statement it would be “hard to come up with a better set of figures”, with the unemployment rate now at a 19-month low.
“The icing on the cake in the latest result is the forward-looking hours worked data. Hours worked by Australian employees have risen to record highs, surging by 0.9% in August. And in annual terms the growth rate is holding at the best levels since before the global financial crisis.”
“Not only are employees holding onto and finding new jobs, but existing workers are working more hours – a result that should ensure that the income side of the household budget improves in coming months.”
He notes the data gives the Reserve Bank more reason to raise interest rate before the year, but predicts the RBA won’t move before inflation data is released in October.
The participation rate lowered to 65.4%, with aggregate monthly hours worked increasing by 0.9% to 1.6 billion hours.
Virgin Blue has said it is upbeat about the prospects of a proposed joint venture with Delta Air Lines, despite the US department of Transportation knocking back the proposal overnight.
Although company shares dropped 4.5% to $0.42.5c at 10.25 AEST, the company said it will work with the US government to address concerns raised, Reuters reports.
It is understood talks will be held over the next two weeks to address some concerns, and that another decision will be made once the fortnight is up. The ACCC has already approved the venture.
In the mining industry, Santos has said it will now sell 15% of the $7.7 billion Gladstone liquefied natural gas project to gas producer Total for $650 million.
“We are pleased to welcome Total into the GLNG project as a fully integrated joint venture partner,” Santos chief executive David Knox said in a statement. “Total brings substantial technical LNG plant and project management expertise with respect to major LNG developments.”
Total chairman Christophe de Margerie said Total would be joining with Santos due to its expertise in the area.
“Total will bring to the project its experience in successfully managing major projects such as the construction of gas liquefaction plants, and its capacity to market LNG to the Asian market,” he said.
Retirement village operator Aevum has said it is in preliminary talks with parties regarding a takeover offer, with FKP Property Group confirmed as one member of the talks.
“There is no certainty that these discussions will lead to a transaction, but we confirm that the details reported in the press, (namely, a scrip merger at net tangible backing of $2.66 for Forest Place and $2.02 for Aevum) reflects the indicative parameters of one potential transaction structure put to Aevum which is under consideration,” the company said.
“There has been no agreement on these parameters nor with any party in relation to a potential transaction.”
The Australian sharemarket has opened higher this morning, following a good night on Wall Street where investors were relieved over signs of Europe’s debt problems beginning to ease.
The benchmark S&P/ASX200 index was up 44 points or 0.99% to 4581.9 at 12.20 AEST, while the Australian dollar briefly touched a four-month high and was trading at US92c at 12.10 AEST.
NAB shares gained 3.4% to $24.77, while Commonwealth Bank shares grew 1.2% to $52.40. ANZ lifted 1% to $23.72, as Westpac gained 1.1% to $22.94.
Also in the mining sector, the Canadian Anatolia Minerals Development company has confirmed plans to purchase Avoca Resources for $US1.04 billion creating new projects in Turkey and Australia.
The company will be named Alacer Gold Corp, with shares to trade on both the Toronto and Australian stock exchanges.
In London, the Financial Times reports Goldman Sachs could be facing a fine worth several million following a five-month investigation into the bank’s international business.
The publication reports a British investigation began following on from charges laid by the US Securities and Exchange Commission regarding civil fraud in dealing with mortgage-backed securities.
Fears of the strength of the US economy have surfaced once again, with the Federal Reserve warning in its Beige Book that economic growth has slowed over recent weeks.
The Fed also said consumer spending is increasing, but shoppers were still limiting themselves to essential items. Consumer credit has also contracted for a sixth consecutive month.
US economist Nouriel Roubini has said there is a 40% chance of a double-dip recession in the US. “If a double dip does occur, (it) could occur within the next 12 months,” he said.
However, shares on Wall Street rallied following good news regarding Europe’s debt problems. The Dow Jones Industrial Average gained 46.32 points or 0.45% to 10,387.01.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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