/www.bloomberg.com/ By Victoria Batchelor
Sydney, Nov. 5 (Bloomberg) -- Australia's economy probably added jobs in October as a construction boom prompted builders to hire workers, and retailers and restaurants added employees.
The economy probably gained 20,000 new positions last month, according to the median forecast of 20 economists surveyed by Bloomberg News. The unemployment rate is expected to be unchanged at 6.2 percent. The Australian Bureau of Statistics releases its employment report at 11:30 a.m., Sydney time, on Thursday.
Following the largest increase in hiring in 11 years in August, the economy lost 30,700 jobs in September. A pick-up in employment last month should underpin consumer confidence and spending in an economy that expanded 3.8 percent in the year ended June 30.
``This will paint a picture of a healthy labor market, with the bulk of total job gains this year driven by full-time employment,'' said Su-Lin Ong, senior economist at RBC Capital Markets. The economy has added 74,000 new full-time positions this year, and 14,000 part- time jobs.
``The economy remains healthy, though the intensifying global headwinds and a worsening drought'' mean the central bank will keep interest rates unchanged in coming months, she said.
The Reserve Bank of Australia's rate-setting board meets today and is expected to announce tomorrow that the overnight cash target rate will be kept at 4.75 percent for a fifth straight month.
The bank raised rates in May and June to help cool a housing boom and keep inflation in check. A global economic slowdown has since crimped export earnings and a drought has cut farm production.
Houses, Boats, Cafes
``Ongoing strength in housing is likely to support jobs in construction,'' said Glenn Maguire, chief economist at SG Australia Ltd.
Among companies announcing more hiring in October, Whittley Marine Industry Pty, a boat builder that exports to the U.S., Europe and China, said it was building a new factory and would take on 70 new workers.
Also, ``we expect a rebound in part-time employment as the warmer weather encourages a pick-up at restaurants and cafes, traditionally employers of part-time workers,'' said Brian Redican, senior economist at Macquarie Bank Ltd.
A bank survey yesterday showed the number of jobs advertised in Australian newspapers rose to a six-month high in October, suggesting the economy may add jobs in coming months.
Job vacancies advertised in newspapers in the country's eight biggest cities rose 4.4 percent from September, Australia & New Zealand Banking Group Ltd. said.
That suggests the economy will add an average of 20,000 jobs a month over the next three months, ANZ Bank said.