Sydney - Thursday - September 6: (RWE Aust Business News) - Whilte the unemployment rate inexplicably fell to 5.1 per cent in August it was associated with a 0.2ppt decline in the participation rate to 65pc, its lowest level since late 2006, according to an economist. "We find it very difficult to believe that the unemployment rate declined in the month given that job ads and measures of hiring intentions have trended lower over the past six months, and the number of unemployment benefit recipients has trended higher," ANZ senior economist, Justin Fabo, said. "The labour force data have been very volatile in recent months. "For these reasons we feel strongly that the unemployment rate will trend higher in coming months. "Given recent signs that the Chinese economy is weaker than expected and the weakness in iron ore and, to a lesser extent, coal prices, the backward-looking nature of today's labour force data and yesterday's GDP data mean they have reduced importance for monetary policy deliberations. "Our view is that the official cash rate will be lowered by November and again in the first quarter of 2013."
