Unemployment falls to 5.2%

ABOUT 14,000 jobs were added in July as Australia's unemployment rate eased slightly to 5.2%.

The fall in unemployment came after the Australian Bureau of Statistics revised the June figure of 5.2% up to 5.3%.

The number of people employed in Australia stood at more than 11.5 million in July.

Full-time employment rose with 9200 people taking up new positions, taking the figure to more than eight million, while part-time employment rose by 4800 to more than 4.3 million.

The number of people unemployed decreased by 2500 to 635,100 in July.

There was a slight dip in the labour force participation rate to 65.2%.

The better than expected jobs figures mean the Reserve Bank is unlikely to ease the cash rate further.

UBS interest rates strategist Matthew Johnson told Reuters the RBA would probably need to see unemployment hit 5.5% before it considered easing monetary policy.

The central bank left the cash rate on hold at 3.5% for the second month in a row when it met on Tuesday.



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