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| Thursday, 9 May, 2002, 06:00 GMT 07:00 UK Jobs evaporate in Australia ![]() Is the sun setting on Australia's good record on job creation? The ranks of Australia's jobless swelled unexpectedly in April, just a day after the country's central bank began tightening interest rates to keep a lid on the consumer boom. The seasonally adjusted figures showed that a net 43,500 jobs disappeared last month, contrary to expectations of a slight rise in employment. But a fall in the number of people looking for work meant the headline rate stayed steady at 6.3%, lower than at any time since January 2001. Such a level, said National Australia Bank head of market economics Tony Pearson, "is still a very good result" indicating a rapidly improving labour market. "That is the result of the very strong growth we have had in the economy," he said. "It certainly does indicate that it was time for the Reserve Bank to ease the foot off the accelerator." More to come The bank did precisely that on Wednesday, edging interest rates up for the first time in 19 months by a quarter of a percentage point to 4.5%. The downturn last year saw the bank slice two points off the base rate, helping growth to reach 4.1% in the fourth quarter of 2001 and forestalling much of the global slowdown. Now the trend is back up, as the bank tries to avoid the inflationary effects of the consumer spending boom - and tries to cap a soaring housing market as well. Pay up The employment numbers, indicating that 11,600 part-time jobs were created while 55,100 full-time ones evaporated, came as low-paid workers got their biggest pay boost in 20 years. The Australian Industrial Relations Commission has added 18 Australian dollars (US$9.74; �6.68) to the federal minimum wage, taking it to A$431.40 ($233.46; �160.21) a week from A$413.40. Unions had argued for an even bigger increase than the 4.4% awarded, but employers said the decision would cost A$1.6bn and about 37,000 jobs. The AIRC, though said the move was necessary to "provide to the needs of the low-paid and maintain the real value of wages". Wages are failing to keep pace with price rises, according to the latest government figures. Its ruling covers low-paid workers including hotel employees, childminders and security guards, who often earn less than A$13 an hour. | See also: Internet links: The BBC is not responsible for the content of external internet sites Top Business stories now: Links to more Business stories are at the foot of the page. | ||||||||||||||||||||||
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