Employment - Full-Time up 53,100

The unemployment rate dropped to a 19-month low of 5.1% in August. Of interest is the fact that full-time employment jumped by 53,100 while part-time dropped 22,100.

The labour force data highlights the solid pace of domestic activity thus far in 2010. There have been 350,000 jobs created in the past year, with the annual pace of employment growth now running at 3.2%yoy in August, up from 2.7%yoy in July

The RBA will be watching closely to see WHEN this strong employment trend puts upward pressure on wages and inflation. Expectations are still for a rate hike in the new year but November is still a very real possibility.

Average hours worked rose for the first time in three months, lifting by 0.9 per cent. Hours worked are up 4.4 per cent over the year. The working age population grew by 32,000 in August.