Australian Unemployment Rate Rises to 5.8%, Participation Falls to 65%

Marcus Jacob
12 Sep, 2013
New York City

Australian look ahead to interest rate decision at the next meeting of policy makers after employment in August month declined 10,800. The broad weakness across many industries lifted hopes of another rate cut and labor participation rate declined to 65%.

[R]5:00 PM Sydney – Australian look ahead to interest rate decision at the next meeting of policy makers after employment in August month declined 10,800. The broad weakness across many industries lifted hopes of another rate cut and labor participation rate declined to 65%.[/R]

Australian market indexes closed to a new 5-year high for the second day in a row after the last month less than expected job creation stoked speculation for another rate cut.

The ASX 200 index advanced 8 points to close at 5,242.50. In trading, 836 million shares worth $4.3 billion changed hands.

On the economic front, the latest employment data highlighted the weakness in employment market.

Australian job participation rate declined to 65% and in August 10,800 net jobs were lost and unemployment rate rose to 5.8%.

The weakness in part-time and full-time hiring was across the board but the mining and manufacturing sectors cut more than estimated jobs in the month.

Stocks in Review

Warnambool Cheese & Butter Factory Co. soared 28% to $5.77 after the company received an unsolicited offer of $319 million from its shareholder Bega Cheese Limited. Bega offered $2 a cash and 1.2 of its shares.

Singapore Telecommunications Limited increased 1% to $3.08 and the company won managed services contract from ANZ Banking Group for another five years.

Sigma Pharmaceutical Limited increased 0.8% after the company reported a 37% fall in first-half profit but confirmed it is on track to meet its full-year earnings outlook.

AGL Energy Limited rebounded from its early losses in the day to close up 0.1% after it won a regulatory approval to acquire Australian Power and Gas Company.