The number of people in full-time work surged by 62,000 in June, continuing the recent run of strong employment data.
But on their own the results are not enough to stir immediate worries about the need for higher interest rates, economists say.
Employment Minister Michaelia Cash calculated that in the first half of 2017 about 27,000 full-time jobs have been created each month.
“That is a fantastic thing for the Australian people,” Senator Cash told reporters in Perth on Thursday.
Commonwealth Securities chief economist Craig James says the combined May-June result of 115,400 additional full-time jobs was the biggest back-to-back gain in almost three decades.
It put to rest concerns insufficient work is available, he said.
“Should the Reserve Bank start thinking about lifting rates? Perhaps the Reserve Bank can start thinking, but it is still too early to lift rates,” Mr James said.
While jobs are being created, wages aren’t rising just yet.
The rise in full-time employment was partly offset by a 48,000 drop in part-time workers in June.
That left the jobless rate unchanged at 5.6 per cent after the May result was revised up from 5.5 per cent.
Australian Chamber of Commerce and Industry chief James Pearson said while unemployment has remained steady, there are 728,100 people out of work and 1.1 million people underemployed.
“Today’s result underscores the need to make it easier for business to hire and make it easier for businesses to grow,” he told AAP.
The latest job results have come at a time of heightened discussions surrounding interest rates.
Minutes of the Reserve Bank’s July board meeting, released this week, included an assessment of what is considered to be a “neutral” cash rate if inflation is stable and the economy is growing at around three per cent.
That rate is now estimated to be 3.5 per cent compared with five per cent prior to the 2008-2009 global financial crisis and the record low 1.5 per cent cash rate now.
Malcolm Turnbull believes the central bank is sending a prudent signal about future interest rates rises.
“They are not saying they are going to do that tomorrow,” the prime minister assured Neil Mitchell on radio 3AW.
“But I think they are sending a signal, which is probably prudent, which is to say … rates are more likely to go up than go down.”
Borrowers should be aware of that, Mr Turnbull warned.
Financial markets are betting on a 0.25 per cent rise in the cash rate to 1.75 per cent in the middle of next year.