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UNEMPLOYMENT is set to drop further with the amount of job vacancies rising to record amounts, fuelling speculation of another interest rise.

National job opportunities in the 90 days to August rose 2.9 %, seasonally modified, in line with the Australian Bureau of Statistics.

Work vacancies increased by 11.9 percent in the season to August.

CommSec equities economist Martin Arnold said with job vacancies now at an archive high, the unemployment rate was set to drop below 4 per cent - from its current 4.3 per cent - as business conditions encouraged bosses to get more staff.

"The Australian economy is producing solid growth and business problems are almost as good as they get," he said.

The strength of the economy led a frustrated John Howard to express people was failing woefully to supply the government credit for economic management.

"I think there is a view in the neighborhood... perhaps a significant number that, for somehow or another, our economic power and our economic stability and development is happening naturally, that the economy is on autopilot," the Prime Minister told a forum at Ocean Grove on the coast yesterday.

He said this was one of the reasons why the us government was faring so poorly in the public opinion polls: "I think people are needs to take the Australian economy for granted."

Seasonally-adjusted work opportunities totalled 172,700 in the three months to August.

Mr Arnold said there were under three unemployed people for each work, the best level on record.

Business companies has been one of many strongest growth areas, with 45,200 opportunities, 28.4 per cent higher than a year before.

The quantity of jobs vacant in the communications industry has more than doubled to 2800 in the same time.

There is strong need for labour in the transportation industries, retail trade and structure.

Parts that be seemingly less desperate for staff include welcome, recreation and personal services.

The public sector is continuing to grow, with the number of vacant jobs 11.8 % greater than a year ago.

In the year to August, job opportunities in the growth state of Western Australia were up by 31.8 per cent, unadjusted, used by the ACT, that has been up 31 per cent.

Only Queensland had a drop, with year-on-year vacancies down 3.3 percent.

Matthew Johnson, the senior economist at agent ICAP, said the increase in jobs opportunities must offer employment growth greater than 2 per cent.

"This suggests that unemployment will probably drop lower, and that everyone from the Reserve Bank down will continue to fret about wage-push inflation," he explained.

High job opportunities and low unemployment is really a old-fashioned recipe for inflation, with a limit to just how many opportunities could be filled.

There's, up to now, been number evidence of wage inflation, with the average price of labour rising largely in line with costs in the economy. Another inflation numbers are published on October 24.

UBS chief economist Scott Haslem said the progress in job openings would contribute to higher inflation in the ultimate months of 2007. He predicted the Reserve Bank would raise interest levels in February 2008 to stop inflation planning above the RBA's 3 percent target range.

Nevertheless Mr Arnold said the escalation in labour supply, originating from migration, wouldn't produce earnings challenges. quality local mobile marketing