Australia Has Worst Job Gains in 15 Years

Australia is headed for its worst year of jobs growth in 15 years, boosting prospects central bank Governor Glenn Stevens will extend interest-rate cuts into 2012 as inflation pressure eases. Payrolls gained 44,700 through the first 11 months of this year, on pace for the smallest growth since 1996 after a record 362,300 increase in 2010, government data released today showed. The report contrasted with figures yesterday showing the biggest six-month gain in economic growth since March 2007. The only Group of 10 economy to avoid the 2009 global recession is ending the year with signs of slower growth as Europe’s fiscal crisis and a stronger currency weigh on tourism, retailers and manufacturers. The nation’s unemployment rate advanced last month to 5.3 percent, matching the highest level this year. Traders are pricing in a 32 percent chance Stevens will lower borrowing costs by a half percentage-point at the RBA’s next policy meeting on Feb. 7, interbank cash-rate futures showed today. The Australian dollar dropped 0.4 percent, the most in a week, to $1.0252 from yesterday in New York and $1.0285 before the data were released.