Speedy drop can be seen in the jobless rate in a few months. Last week's drop in the jobless rate to 5.3% was a big success. TD Securities Senior Strategist, Annette Beacher predicts a further dip to 5.0% by March and even lower by mid-year.

The annual rate of the index had shrunk by around 60%, by the middle of last year, having gradually drooping from November 2007.

"The continued improvement in this series suggests that employment can continue to surprise to the upside for the next few months, lowering the unemployment rate to 5% by March and closer to 4.5% by mid-year", said Ms. Annette Beacher.

6.2% was the annualized growth rate of the Westpac-Melbourne Institute leading index. The index has made a remarkable improvement after hitting a low of minus 6.9% in May last year.

"This swing is not only the fastest reversal since the economy bounced out of recession in the mid-1970s, but also puts the growth outlook back on a par with that seen in 2007 at the height of Australia's resources boom", said Matthew Hassan, Westpac senior economist.

Such strength in employment will help to raise the risk of higher interest rates in coming months.