Australian Jobless Rate Falls to 5.1%, Qantas and Emirates in Alliance

Marcus Jacob
06 Sep, 2012
New York City

Australian unemployment rate declined to 5.1% in August but worker participation rate fell as younger people find it difficult to gain jobs outside the mining sector. Qantas sealed its alliance with Dubai based Emirates and Lynas won a temporary approval to start its refinery in Malaysia.

[R]10:30 PM Sydney – Australian unemployment rate declined to 5.1% in August but worker participation rate fell as younger people find it difficult to gain jobs outside the mining sector. Qantas sealed its alliance with Dubai based Emirates and Lynas won a temporary approval to start its refinery in Malaysia.[/R]

Australian stocks closed higher and recovered from one month low after unemployment rate fell.

After the close, European Central Bank left its key rate at 0.75% and offered to buy unlimited amount of euro zone bonds to arrest the rising rates of Spain and Italy and other peripheral nations.

Australian jobless rate declined to 5.1% in August from 5.2% in July and worker participation in labor force also fell according to the latest data released by the Australian Bureau of Statistics.

The jobless rate has hovered between 5% and 5.3% in the last seventeen months but younger workers are facing difficulties in finding work as available jobs are declining outside the mining area.

The full-time jobs available increased 600 in the month and part-time employment declined 9,300. The worker participation rate declined to 65% in the month from 65.2% in the previous month and dropped to the lowest level since March 2007.

Australia’s two speed economy added jobs in the mining sector dominated Western Australia by 6,900 and 5,800 in Queensland. Employment fell 14,800 in Victoria and 9,000 in South Australia.

The ASX 200 index increased 34.10 or 0.8% to 4,312.90 and the broader All Ordinaries gained 33.99 or 0.8% to 4,331.64.

The Australian dollar decreased to US$1.012 after the release of GDP data from the previous close at US$1.023.

Stock Movers

Billabong gained 9.5 cents to $1.36 after the company received a second takeover offer.

BHP Billiton Limited increased 29 cents to $31.34 and, Rio Tinto Limited climbed 82 cents to $50.16 and Fortescue Metals Group slumped 15 cents or 4.8% to $2.97.

Lynas Corporation Limited jumped 24.5 cents or 41.2% to 84 cents after it confirmed that it received a temporary license to use its $800 million refinery plant.

Iluka Resources gained 24 cents to $8.84. Newcrest Mining advanced 58 cents to $25.60 after gold added more than $10 an ounce in international markets. Kingsgate added 2 cents to $4.35 and Whitehaven Coal increased 9 cents to $3.05.

Transfield Services up 3 cents to $1.69 billion; engineering contractors WorleyParsons jumped 15 cents to $25.30 and Monadelphous Group gained 25 cents to $19.80.

Oil Search Limited increased 10 cents to $7.44 and Santos Limited climbed 34 cents to $11.65 and Woodside Petroleum advanced 21 cents to $34.93. Sundance Energy edged up 1 cent to 71 cents.

Seven West Media up 1 cent to $1.36, Ten Network lowered 1 cent to 36.5 cents and Fairfax Media added 1.5 cents to 43 cents. News Corp gained 30 cents to $23.52.

Harvey Norman Holdings closed unchanged at $1.99, Woolworths jumped 56 cents to $30.56 and Kathmandu closed unchanged at $1.38.

Commonwealth Bank of Australia increased 17 cents to $54.72 and Bank of Queensland up 2 cents to $7.54. ANZ added 4 cents to $24.21. National Australia Bank gained 14 cents to $25.11 and Westpac Banking Corporation slipped 5 cents at $23.90.

Macquarie Group climbed 30 cents to $27.57. Perpetual Limited declined 33 cents to $27.10 and the financial services reported profit dropped 57% on restructuring charges.

David Jones Limited increased 7 cent $2.42 and Wesfarmers gained 8 cents to $35.42. Billabong International Limited surged 10 cents or 7.5% to $1.37. Breville Group added 3 cents to $5.42. Harvey Norman closed unchanged at $1.99.

Toll Holdings closed unchanged at $4.60, Leighton increased 10 cents to $14.95 and property developer Mirvac Group added 4 cents at $1.42.

Qantas climbed 8 cent or 6.7% to $1.20 after airliner said today it has signed a 10-year partnership deal with Emirates, ending a long-term relationship with British Airways to boost its struggling international division.

The partnership extends beyond code-sharing in pricing, sales and scheduling as well as a benefit-sharing model and neither will take equity in each other.

Qantas will launch daily services to London via Dubai that together Emirates and Qantas will offer 98 weekly services between Australia and Dubai.

Flight Centre jumped 60 cents to $23.50 and Virgin Australia fell 1 cent to 44 cents.

QR National added 2 cents to $3.55 and Telstra closed unchanged at $3.84.