Sydney: Australia`s unemployment rate fell to 6.2 percent in August with thousands of new jobs created, official data showed on Thursday, as the economy continues to shift away from a massive resources investment boom.
A total of 17,400 jobs were added to the economy last month, 11,500 full-time and 5,900 part-time, the figures from the Australian Bureau of Statistics showed.
The improved reading, from 6.3 percent in July, matched analysts` forecasts, but the jump in positions was above expectations for a 5,000 increase.
The Australian dollar, which has been struggling to remain above 70 US cents in the past week, strengthened on the back of the new jobs, gaining a quarter of a US cent to 69.70 US cents.
"Generally the picture is still of companies hiring, which contrasts with the weak GDP result," Barclays` chief economist for Australia Kieran Davies told AFP.
"This survey is showing a strengthening in business conditions, so I think that companies are feeling more confident to put more staff on and historically that also signals a pick up in non-mining (capital expenditure)."
Australia`s gross domestic product (GDP) expanded by a slower-than-expected 0.2 percent in April-June for an annual rate of 2.0 percent, reflecting the economy`s wobbles as it transitions away from an unprecedented mining investment boom that has helped it avoid recession for more than two decades.
The unemployment rate has hovered around a decade-high of 6.0 percent over the past year, while spending by firms in non-resources industries has yet to fill the gap left by the mining sector.
To boost growth in the non-mining sectors such as housing, the central bank has cut interest rates over the past four years to a record low of 2.0 percent.
At the same time, tumbling commodity prices have hit government revenue, amid concern about the softening economy of China, Australia`s largest trading partner.