Drop in unemployment puts pressure on rates

The national jobless rate fell to its lowest level since November 1974, to 4.2 per cent, putting additional pressure on interest rates. The unemployment figure has followed a stronger than forecast March GDP reading. In an unusual twist, it was the creation of full time roles that delivered the growth in job numbers, with 66,800 new full time jobs filled whilst part-time employment fell by 27,400, a net increase of 39,400. Economists are now forecasting a rate rise as early as August 2007, though the month of November appears most likely, putting an interesting twist on any election date plans the Federal government may have.