Unemployment possibly heads to cut Interest Rate

The report showed that conditions in Australia’s job market continued to deteriorate in October giving the country’s central bank more scope to cut interest rates over coming months. Analysts expect that the Australia’s unemployment rate will keep rising in coming months. Economists surveyed by AAP finds that they are expected to have an increase in  the number unemployed by 10,000 in October and the unemployment rate having risen to 5.3%. According to CommSec Chief Economist Craig James, “Probably the safest course in the current environment is to maintain your existing workforce, take on temp staff if you need to and work people more intensively.” Mining boom condition created enough jobs to compensate but firms are very wide open range indicators for the further in terms of investment, outside of mining and labor hiring. Australian and New Zealand Banking Group released their monthly job market survey, total job advertisement in newspapers and on the internet fell 0.7% in October from September. ANZ’s head of Australian Economics and Property Research Ivan Colhoun said “the job ads data is consistent with a rise in the unemployment rate to 5.5% by mid-2012, levels not seen last 2001 when the economy was pulling clear of the global financial crisis.” When unemployment rate have risen, wages and inflation will have moderate movement.