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UNEMPLOYMENT is set to drop further with the amount of job opportunities climbing to record levels, fuelling speculation of another interest rate rise.

National job vacancies in the 90 days to August rose 2.9 %, seasonally adjusted, according to the Australian Bureau of Statistics.

Work vacancies increased by 11.9 % in the entire year to August.

CommSec stocks 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 bosses were encouraged by business conditions to seek more staff.

"The Australian economy is documenting solid growth and business problems are practically just like they get," he explained.

The potency of the economy light emitting diode a frustrated John Howard to express people was failing continually to give the government credit for economic management.

"I think there's a view in the community... perhaps an important number that, for somehow or still another, our economic power and our progress and economic stability is occurring naturally, that the economy is on autopilot," the Prime Minister told a forum at Ocean Grove on the Victorian coast yesterday.

He said this was among the explanations why the federal government was faring so poorly in the public opinion polls: "I think individuals are starting to take the Australian economy for granted."

Seasonally-adjusted job openings totalled 172,700 in the 90 days to August.

Mr Arnold said there have been under three unemployed people for each and every vacant job, the cheapest level on record.

Business companies has been among the strongest growth areas, with 45,200 openings, 28.4 percent higher than a year before.

The number of jobs vacant in the communications industry has significantly more than doubled to 2800 in exactly the same period.

There is strong demand for labour in the construction, retail trade and transportation sectors.

Areas that appear to be less desperate for staff include food, adventure and personal services.

People sector is continuing to develop, with how many vacant jobs 11.8 % greater than a year ago.

In the entire year to August, job vacancies in the increase state of Western Australia were up by 31.8 per cent, unadjusted, adopted by the ACT, which was up 31 per cent.

Only Queensland had a drop, with year-on-year openings down 3.3 per cent.

Matthew Johnson, the senior economist at broker ICAP, said the rise in jobs opportunities should produce employment growth in excess of 2 per cent.

"This means that unemployment will probably drop lower, and that everybody else from the Reserve Bank down will continue steadily to worry about wage-push inflation," he explained.

Large job vacancies and low unemployment is a old-fashioned formula for inflation, with a limit to just how many positions could be filled.

There's, to date, been no proof of wage inflation, with the average price of labour increasing largely in line with prices in the economy. The following inflation numbers are published on October 24.

UBS primary economist Scott Haslem said the progress in job openings would donate to higher inflation in the last months of 2007. He predicted the Reserve Bank could raise interest rates in February 2008 to avoid inflation going above the RBA's 3 percent target range.

However Mr Arnold said the escalation in labour supply, originating from experienced migration, would not make wages demands.