Bill Spartin
4/8/11
3:20 am
The Australian unemployment rate fell to a record low since December of 2008, the current jobless rate now standing at 4.9%. According to the latest data Australia added 37,800 people to the workforce in March alone. Following in the wake of this high employment rate is the 29-year high of the Australian dollar which was trading at 1.0489 against the American dollar. The interest rates for borrowing money are temporarily unaffected by this economic surge, however that is projected to change as the economy of Australia continues to flourish. Also paired with the high employment rate and in junction with the shortage of specialized labor, wages are projected to increase which will put pressure on consumer prices. Australia has recently been plagued by natural disasters this year; flooding and a cyclone. This economic surge that we are seeing is the result of a nation recovering from such natural disasters which temporarily hampered their progress. Eventually banks will need to raise interest rates to keep up with the projected rise of cost in goods brought on by the lack of specialized labor in the workforce. Banks will raise their interest rates, which will create more revenue to be loaned back out, which will be used to reinvest in Australia's economy. With the economy being continuously stimulated by the consumers demand companies will need to increase the amount they pay their workers and also their hours, putting more money back into the economy.
http://www.bbc.co.uk/news/business-12983692
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