Australian Unemployment Steady at 5.1%

Marcus Jacob
07 Jun, 2012
New York City

Australian stocks advanced for the third day in a row after the latest jobs report showed healthy gains in May. Employers added 50,000 net new jobs in May after adjusting for seasonal factors and unemployment rate held steady at 5.1%.

[R]8:00 PM Sydney – Australian stocks advanced for the third day in a row after the latest jobs report showed healthy gains in May. Employers added 50,000 net new jobs in May after adjusting for seasonal factors and unemployment rate held steady at 5.1%.[/R]

Australian stocks rebounded for the third day in a row after jobs reports showed healthy hiring pace.

In May employers added 46,500 full time jobs and net jobs in the month increased 39,000 according to the latest data released by the Australian Bureau of Statistics. The seasonally adjusted net jobs gains were estimated at 50,000 according to the statistics agency.

The seasonally adjusted net addition estimated was evenly divided between the full and part time jobs and unemployment rate in the month was held steady at 5.1%.

The jobs market statistics painted healthy picture but 900,000 of 3.4 million part time workers prefer to work full time if they can find work. The number of underutilized worker percentage increased to 12.6% from 12.1% in the month a year ago.

The ASX 200 index advanced 53.30 or 1.3% to 4,108.60 and All Ordinaries index rose 52.06 or 1.3% to 4,156.72. Qantas extended losses for the third day in a row and dropped to a new record low.

The Australian dollar rebounded to 99.82 U.S. cents.

In trading, turnover increased to 1.71 billion shares worth $4.46 billion and 610 stocks gained, 387 declined and 365 were unchanged.

Stock Movers

David Jones Limited increased 10 cents to $2.20, Harvey Norman Holdings closed up at 3 cents to $1.88 and Woolworths advanced 32 cents to $26.67.

Kathmandu unchanged to $1.14. Billabong International Limited added 3 cents to $1.90.

Brambles dropped 33 cents to $6.42 after the pallet maker resumed trading after it scrapped its plan to sell its information management business for $2 billion.

BHP Billiton Limited gained 48 cents to $31.58 and Rio Tinto Limited advanced $1.17 to $55.42. Fortescue Metals Group increased 13 cents to $4.68.

Lynas Corporation Limited rose 1 cent to $1.02 and Iluka Resources gained 21 cents to $12.70. Newcrest Mining added 7 cents to $25.78 and Kingsgate increased 8 cents to $5.91.

Oil Search Limited added 5 cents to $6.63 and Santos Limited advanced 23 cents to $11.97 and Orica gained 21 cents to $24.29.

None of the four major banks passed on the latest rate cut from the Reserve Bank of Australia despite record profits and executive bonuses.

Commonwealth Bank of Australia closed up at 99 cents to $51.04 and Bank of Queensland increased 7 cents to $6.61. ANZ gained 47 cents to $21.81. National Australia Bank gained 31 cents to $22.56 and Westpac Banking Corporation closed up at 42 cents to $20.77.

Stockland rose 2 cents to $3.25, Leighton advanced 33 cents to $17.31 and Toll Holdings closed up at 12 cents to $4.50.

Qantas slid 7 cents to $1.07 and extended losses for the third day in a row, Virgin Australia unchanged to 41.5 cents and Flight Centre increased 58 cents to $18.31.

QR National gained 12 cents to $3.49.