The state's unemployment rate for December has dipped to 5.1 per cent as the number of people employed in a full-time capacity dropped, new figures show.
The state's unemployment rate for December has dipped to 5.1 per cent as the number of people employed in a full-time capacity dropped, new figures show.
The Australian Bureau of Statistics said today that Western Australia's jobless rate was a seasonally adjusted 5.1 per cent, down from 5.2 per cent recorded in November.
The rate compares with 3.1 per cent from a year ago.
For the month of December, the number of people employed in a full-time capacity dropped from a seasonally adjusted 823,400 in November to 822,900.
However the total number of people employed rose from 1.1656 million to 1.1727 million.
The state participation rate in the workforce rose from 68.2 per cent to 68.4 per cent.
Nationally, the unemployment rate was a seasonally adjusted 5.5 per cent in December, compared with an downwardly revised 5.6 per cent in November.
It was the lowest jobless rate since April 2009.
Total employment rose by 35,200 to 10.906 million in December, seasonally adjusted.
Full-time employment rose by 7,300 to 7.635 million in the month and part-time employment was up 27,900 to 3.271 million.
The median forecast was for total employment to have risen by 10,000 in the month and for the unemployment rate to either remain steady at 5.7 per cent or rise to 5.8 per cent.
National Australia Bank senior economist David de Garis said the figures showed the labour market had "unambiguously turned the corner".
"It is rather a compelling picture now that employment, which is usually regarded as a lagging indicator, has picked up rather quickly in the past few months," Mr de Garis said.
"It has broken out of that 5.7 per cent to 5.8 per cent range as it has been stuck in since May."
Mr de Garis said the growth in the labour market was placing pressure on the economy and increased the likelihood the RBA would lift the overnight cash rate by 25 basis points to 4.0 per cent on February 2.
"For the Reserve Bank it means the economy is eating into diminished resources already," he said.
"The Reserve Bank has done some heavy lifting so far to remove the emergency rate cuts, but it looks like their job has not finished yet."
"It adds to the case for them to go again in February."
The central bank lifted the cash rate by 25 basis points to 3.75 per cent on December 1, following similar moves in October and November.
Mr de Garis said the unemployment rate may have peaked at 5.8 per cent.
The federal government in its mid-year economic and fiscal outlook for 2009/10 said it expected the jobless rate to peak at 6.75 per cent.
"We may not get to six per cent, which looks a bit of a stretch," Mr de Garis said.
ICAP senior economist Adam Carr, who was expecting a small decrease in total employment, said the data reflected the healthy state of the Australian economy and ensured a fourth consecutive rate rise by the RBA.
"I was expecting a small negative ... but this suggests we're looking at a very healthy labour market," Mr Carr said.
"A February hike is a done deal.
Mr Carr said the pace of rate rises in 2010 would depend on how commercial banks reacted to another 25 basis point rate rise in February.
"Obviously Westpac set the tone when they lifted their (variable mortgage rate) by 45 basis points (in December)," Mr Carr said.
"The pace of tightening will be quite modest but we don't know what margins the banks are targeting."
CommSec chief economist Craig James said unemployment had peaked well below government expectations of a 6.75 per cent unemployment by the June quarter.
"It should now be clear to all and sundry that the unemployment rate has peaked," Mr James said in a research note.
"Not only has unemployment fallen for two straight months but the data on job ads show that employers are actively hiring new workers."
But Mr James said while the economy was still growing at a sub-standard pace, the RBA would continue to lift rates to a "neutral" level of 4.25 to 5.0 per cent in 2010 as growth picked up.
"The jobs result will give the Reserve Bank confidence to keep lifting rates back to more normal levels," he said.
"While the cash rate has risen by three-quarters of a per cent, it still only stands at 3.75 per cent, well below the range of 4.50 to 5.00 per cent that would be considered appropriate for a normal functioning economy.
"The economy is still growing at a sub-standard pace, although that can be expected to improve as the year progresses.
CommSec economists expected the cash rate to sit between 4.25 per cent and 4.50 per cent by the middle of the year.