Canberra, May 8 (Bloomberg) -- Australia will not produce as many jobs as it didin the past two years because of the slowing economy, Treasurer Peter Costellosaid. Costello told reporters that the slowing economy would hamper job growth,although maintained there were positive signs for in the second half of this year.Costello also said the budget, due to be brought down on May 22, had beenlargely settled. The number of jobs advertised last month in Australian newspapers fell 3.2percent to its lowest in four years. The economy shed 2,600 jobs in March,although the unemployment rate fell to 6.5 percent from 6.6 percent as fewerpeople looked for work. Australia's economy shrank 0.6 percent in the fourthquarter, ending nine years of growth. ``You would expect the slowing economy will mean that we won't be creating jobsat the rate we were in the past two years,'' Costello told reporters. ``Still, thereare very positive signs for the economy in the latter part of this year.'' Australia's unemployment rate hit a 10-year low of 6.3 percent in September.Some 199,100 jobs were created in the year to that month, when Sydney hostedthe Olympic Games. Retail sales unexpectedly gained for a fourth month in March, rising 1 percent,according to the Australian Bureau of Statistics. Still, a National Australia Bank survey released today showed businessconditions were at an eight-year low, suggesting the economy will weaken andthe Reserve Bank of Australia will cut rates again next month. The bank has cut rates three times this year to 5 percent, although it held theofficial rate steady at its meeting last week. In its quarterly statement on monetary policy, released yesterday, the bank saidit sees ``encouraging signs'' in the economy. Still, it signaled further rate cuts ifthe global economy slowed further.