Unemployment rate falls again | Lion Property Group

Unemployment rate falls again.

Some 89,000 jobs were added to the employment market in February, bringing the unemployment rate from 6.3 percent down to 5.8 percent.

Some 89,000 jobs were added to the employment market in February, bringing the unemployment rate from 6.3 percent down to 5.8 percent. This has surpassed economist expectations, and is likely to trigger upgrades in the RBA’s and Treasury’s forecasts.

On the other hand, there’s more to the economy than just the employment rate. Australia is lagging behind several other OECD nations when it comes to key measures. Australia is still facing slow wage growth, a high budget deficit, increasing debt, and negative annual GDP growth.

Ireland, Taiwan, and Luxembourg beat Australia in all of these metrics, showing that it is possible to be doing better. The Netherlands, South Korea, Denmark, Norway, and New Zealand also all beat Australia at some of these metrics.

Yes, it’s good to celebrate that jobs are coming back to the economy—but as investors, we can’t forget about these other important metrics, and how they affect the economy, when making our decisions.

Rising wage growth and GDP growth, in addition to the unemployment rate, will signal that we can begin to wean ourselves off of Government stimulus. ∎

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Invest in a property development project in one of Melbourne’s premier suburbs.

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