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Jobs market will grow, says RBA's Lowe

AAP logoAAP 22/09/2016 Lisa Robinson

There is more slack in the labour market than the unemployment rate suggests but jobs growth looks likely to continue, Reserve Bank governor Philip Lowe says.

Speaking to a parliamentary committee on Thursday, Dr Lowe said there is strong growth in part-time employment but relatively weak growth in full-time jobs.

"So there's probably a bit more slack in the labour market than suggested by the unemployment rate, but that's a qualification on what has been a very positive story," he said.

The unemployment rate is at 5.6 per cent, its lowest level in three years.

"We thought a year ago that the unemployment rate would now be above six per cent, and here we are between five and a half and five and three quarters. A lot more people have jobs," Dr Lowe said.

"The various forward-looking indicators of the labour market that we track - the job ads and job vacancies - they're on gradually improving trends so I think we can look forward to continuing reasonable employment growth."

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