/www.bloomberg.com/ By Victoria Batchelor
Sydney, Jan. 13 (Bloomberg) -- Australia's economy probably lost jobs for the first time in three months in December as farmers and exporters, battling a drought and weaker global demand, shed workers.
The economy probably shed 7,500 jobs, according to the median forecast of 21 economists surveyed by Bloomberg News. In November, 60,400 new positions were created, which was three times economists' expectations. The Australian Bureau of Statistics releases its employment report at 11:30 a.m., Sydney time, on Thursday.
The most extensive drought in a century and falling commodity prices have cut profits for agricultural companies and exporters, resulting in some companies shedding workers. The trade deficit rose to its highest in more than two years in November and economic growth is expected to slow to 3 percent this year as exports decline.
``The prospect of slower residential-construction activity together with the drought and sluggish global growth will restrain hiring'' this year, said Besa Deda, an economist at Commonwealth Bank of Australia.
The unemployment rate is expected to have remained unchanged at 6.1 percent in December as fewer people sought work.
The jobs market improved last year as a surge in construction and higher consumer spending fueled an annual economic growth rate of almost 4 percent. The jobless rate fell from as high as 7 percent in January.
``The labor market was one of the bright spots of the Australian economy in 2002, propelled by the resurgence in the housing sector,'' said Brian Redican, senior economist at Macquarie Bank Ltd.
Now that housing has peaked, ``this raises the prospect that the unemployment rate will begin to creep back up toward 7 percent over 2003,'' he said.