Rate rise likely after surprise fall in unemployment

A surprise fall in the unemployment rate will undoubtedly put pressure on the Reserve Bank to lift rates for the fourth consecutive time when they meet again on 2 February 2010. According to data from the Australian Bureau of Statistics (ABS), the unemployment rate fell 0.1 per cent in December 2009 to 5.5 per cent, its lowest level since April 2009.

The number of people unemployed in Australia decreased by 10,600, or 1.6 per cent, to 639,400. The number of people in work grew by 35,200, three times more than economists had predicted.