Nance

UNEMPLOYMENT is set to drop further with how many job openings rising to record levels, fuelling speculation of another interest rise.

National job opportunities in the three months to August rose 2.9 percent, seasonally modified, based on the Australian Bureau of Statistics.

Job openings rose by 11.9 percent in the entire year to August.

CommSec stocks economist Martin Arnold said with job opportunities now at accurate documentation high, the unemployment rate was set to fall below 4 per cent - from its present 4.3 per cent - as business conditions inspired bosses to seek more staff.

"The Australian economy is recording strong growth and business problems are practically as effective as they get," he explained.

The strength of the economy light emitting diode a frustrated John Howard to express people was failing continually to provide the government credit for financial management.

"I think there's a view locally... Probably a substantial number that, for somehow or yet another, our economic power and our economic stability and growth is happening naturally, that the economy is on autopilot," the Prime Minister told a forum at Ocean Grove on the Victorian coast yesterday.

He said this was one of the explanations why the federal government was performing so badly in the public view polls: "I think individuals are starting to get the Australian economy for granted."

Seasonally-adjusted job opportunities totalled 172,700 in the three months to August.

Mr Arnold said there were fewer than three unemployed people for each and every vacant job, the lowest level on record.

Company companies has been one of the strongest growth areas, with 45,200 vacancies, 28.4 % more than a year ago.

The amount of jobs vacant in the communications industry has a lot more than doubled to 2800 in exactly the same period.

There is strong demand for labour in the building, retail trade and transport sectors.

Parts that be seemingly less desperate for staff include food, recreation and personal services.

The general public sector is continuing to develop, with the amount of vacant jobs 11.8 percent higher than last year.

In the entire year to August, job vacancies in the growth state of Western Australia were up by 31.8 per cent, unadjusted, adopted by the ACT, that was up 31 per cent.

Only Queensland had a decline, with year-on-year openings down 3.3 per cent.

Matthew Johnson, the senior economist at dealer ICAP, said the increase in jobs opportunities must provide employment growth greater than 2 per cent.

"This means that unemployment will probably drop lower, and that everyone from the Reserve Bank down will continue steadily to fret about wage-push inflation," he said.

Low unemployment and large job openings is a traditional recipe for inflation, with a limit to exactly how many opportunities can be filled.

There has, to date, been no evidence of wage inflation, with the average cost of labour increasing largely in line with prices in the economy. The next inflation numbers are published on October 24.

UBS chief economist Scott Haslem said the progress in job vacancies would donate to higher inflation in the final months of 2007. He predicted the Reserve Bank would increase interest levels in February 2008 to stop inflation going above the RBA's 3 % target range.

But Mr Arnold said the increase in labour supply, coming from migration, wouldn't make wages difficulties. small blue arrow