BBC News - Australia's job growth falls to 19-year low in 2011

Australia's job growth has dipped to its slowest pace in 19 years raising fresh concerns about a slowdown in the country's economy.

There have been concerns about the impact of slowing labour market on Australia's economy

The total number of people employed grew by 25,900 or 0.2% last year, down from 3.3% in 2010.

The fears were fanned further as the Australia Bureau of Statistics reported that the economy shed 29,300 jobs in December.

Analysts said the weak numbers may see the central bank cut interest rates.

"The bottom line is that it (the labour market) clearly has softened during the course of the year," said Michael Blythe, chief economist of Commonwealth Bank of Australia.

"With a weakening labour market it's an environment which favours lower interest rates."