FED: Economy in great shape despite jobless rate: Howard

AAP General News (Australia)
12-10-1998
FED: Economy in great shape despite jobless rate: Howard

By Liz Rudall, Economics Correspondent

CANBERRA, Dec 10 AAP - Prime Minister John Howard today boasted the economy was in its best
shape for three decades this Christmas, despite an extra 50,000 people joining the jobless
ranks.

Australias unemployment rate swelled to a seasonally adjusted 8.0 per cent in November
after hitting an eight-year low of 7.7 in October - fuelled mainly by part-time work created
by the federal election.

The Australian Bureau of Statistics said Australias workforce shrank by 49,800 people in
November - the biggest monthly fall in employment in more than five years.

Jobseekers appeared disheartened, with the participation rate falling as mainly women
dropped out of the labour force.

But despite the glum outlook, Mr Howard used the last parliamentary question time for the
year to highlight the strength of the Australian economy, which in turn would generate jobs.

"Not since the 1960s have we had it so good," he told parliament.

"As we come to the end of this year we can be secure in the knowledge that we have a
stronger economy than Australia has boasted for more than three decades."

He said the government had delivered strong growth and a secure economy to Australians this
Christmas.

"The Australian public will go to this Christmas knowing that the economic circumstances of
this nation are better at this Christmas than they have been for 30 years," he said.

"They will go to their Christmas knowing that the quality of economic management of this
nation over the past two-and-a-half years has piloted the Australian economy away from the
worst impact of the Asian economic downturn."

But Opposition Leader Kim Beazley said the rise in the number of unemployed people actively
seeking work, up 31,000 to 750,800, was the largest increase in six years.

The ABS said the last such rise was seen in October 1992, when the total number of
unemployed people increased by 32,300.

"This is the worst monthly jump in unemployment since 1992," he told parliament. "In 1992,
what was then being experienced was a worldwide recession.

"That may yet be something experienced - I hope not, I actually believe not - in the course
of the next 12 months, but we are not experiencing it now."

The opposition also accused the federal government of driving women out of the workforce,
explaining the reduced participation rate for women - down to 53.8 per cent from 54.2 per cent
in October.

Mr Beazley said if the participation rate was as high now as it had been under Labor, the
jobless rate would be as high as 8.9 per cent.

Employment Minister Peter Reith dismissed the volatility of the seasonally adjusted
figures, and instead highlighted the trend unemployment rate for November of 7.9 per cent,
down from 8 per cent a month earlier.

He also stressed a fractional fall in the youth unemployment rate to 26.9 per cent.

New South Wales saw a disproportionate rise in its jobless rate - up to an adjusted 7.8 per
cent from 6.7 per cent last month, he said.

AAP ear/mfh/it

KEYWORD: ECONOMY NIGHTLEAD

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