NO.080

LABOUR FORCE, AUGUST 2003

Today’s labour force data recording the lowest unemployment rate in more

than 13 years once again demonstrates the extraordinary resilience of

the domestic economy, supported by low interest rates and strong consumer

confidence.

In the face of the worst drought in a century, the onset of SARS, a weak

international economy, and the ravages of war, labour force data released

by the Australian Bureau of Statistics this morning shows that Australia’s

unemployment rate fell to 5.8 per cent in August 2003.

It is the lowest recorded rate of unemployment since January 1990.

Employment increased by 80,600 persons in August, with 63,500 new

full-time jobs and 17,100 part-time. A total of 1.2 million

new jobs have been created since the Coalition came to office in March 1996

and the unemployment rate has fallen from 8.2 per cent to August’s

5.8 per cent.

Westpac and the Melbourne Institute released data yesterday showing that

consumer sentiment rose by a solid 3.2 per cent in September

to be around 16 per cent above its long-run average. Household

consumption rose by 1.2 per cent in the June quarter, and current

price retail turnover increased by 0.8 per cent in July to

be 6.4 per cent higher over the past year.

In addition to employment growth, family finances are being supported

by income tax cuts, which took effect on 1 July.

This optimism in the household sector is also supporting business activity,

with the NAB monthly survey released earlier this week showing that business

confidence remained very strong in August. The strength of activity in

the business sector was also borne out in the June quarter National Accounts,

which showed an 11.3 per cent increase in business investment

in the year to the June quarter.

While it is pleasing to see the unemployment rate fall below 6 per cent

for the first time in more than 13 years, Australia can do better.

The pace of reform must be maintained. The Labor Party and the Senate

should support the Government’s workplace reform agenda to finally rid

Australia of the high unemployment policies of the past.

It is only through a commitment to labour and product market reform,

to healthy competition, and to prudent macroeconomic policies that Government

can help to reinforce Australia’s economic strength.

CANBERRA

Thursday, 11 September 2003

Contact: David Alexander

(02) 6277 7340