SYDNEY: Australia's jobless rate saw a surprise fall to 5.1 percent in August, but the overall picture was not so bright, with 8,800 jobs shed and a drop in the participation rate and hours worked.
The Australian Bureau of Statistics said the jobless rate fell 0.1 percentage point from 5.2 percent in July, while it was also better than the increase to 5.3 percent expected by analysts.
The result was underpinned by the creation of 600 extra full-time jobs and the pool of unemployed workers shrinking by 10,600 people to 622,600.
But analysts said the headline rate disguised a weakening in the labour market, with 8,800 jobs shed overall and a 0.2 percentage point drop to 65 percent in the proportion of working-age Australians in or looking for work.
Total aggregate hours worked in the economy fell 5.7 million hours to 1,618.8 million in the month.
The data supports a picture of cooling growth in minerals-rich Australia as commodities prices and demand plunge due to slowing in major trading partner China, with the economy expanding just 0.6 percent in the three months to June.
The government has forecast unemployment to hit 5.5 percent in the financial year to June 30, 2013.
Employment Minister Bill Shorten welcomed the new headline rate but acknowledged that the labour market was slowing.
"The government recognises that there is ongoing softening in the Australian labour market," Shorten told reporters, noting the fall in the participation rate.
"But Australia, despite a softening labour market, is still doing better than most of the world."
He said the mixed picture showed that parts of the economy including manufacturing, tourism and education were struggling due to the high Australian dollar while others were benefiting from the mining boom.
"Despite the difficult circumstances that the world is facing, Australians are working hard and they're hanging in there," he said.
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