'The unemployment rate has dropped back to 3.7 per cent with...

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The unemployment rate has dropped back to 3.7 per cent with about 116,000 more Australians in work in February.

Economists were generally expecting about 40,000 extra people to be employed last month and an unemployment rate of 4 per cent.

ABS head of labour statistics, Bjorn Jarvis said with employment growing by about 116,000 people, and the number of unemployed falling by 52,000 people, the unemployment rate fell to about where it had been six months earlier.

He noted the increase in employment in February followed a weaker-than-usual outcome in December (-62,000), and a modest increase in January (15,000).

"This equates to 70,000 more employed people in February than there were in November and a growth rate consistent with the underlying trend," he said.'

Macro economic background improving.
Good news for bad debts, bad news for early interest rate cuts.