Jobs boom threatens inflation in Australia

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Job growth is booming in Australia, good news that is also bringing some worries along with advantages. The number of new jobs have some analysts worrying that more people having more money to spend will spark inflation and lead to higher interest rates to keep inflation under control. Other analysts are skeptical that the increase in the number of people employed pose a risk that inflation will rise. Current figures show consumer price inflation at an annual rate of 2.4 percent for the March quarter, well within the target of 2.0 to 3.0 percent inflation, set by the central bank. Available data show that a total of 362,500 jobs were created in the past 10 months. 41,700 of those jobs were created in June. The jobless rate is at 5 percent, its lowest level since 1976, and employment growth is at 3.8 percent for the year. Additionally, two-thirds of the jobs created since August are full-time positions, coming with higher pay rates. 64.7 percent of the adult population of Australia are currently employed, an all-time high. Junes job growth came as a surprise due to declines in domestic demand and housing, as well as a series of economic indicators that imply a general downturn in the Australian economy.