Rudd ousted in Australia

CANBERRA, Australia, June 23 (UPI) -- Australia's Labor Party has elected Julia Gillard as its leader, ousting Prime Minister Kevin Rudd weeks before a federal election, officials said.

Gillard was unopposed in the leadership election and is to be sworn in Friday morning as Australia's first woman prime minister, the Australian Broadcasting Corp. reported. Gillard, a former deputy prime minister who demanded a vote on the party leadership, will decide when to lead her party into the next general election, The Age newspaper reported.

Rudd -- whose popularity fell dramatically in recent months -- is the first Labor prime minister to fail to finish a first term. He had told Australians Thursday night he would remain in office.

Rudd made "a very gracious speech" and stood aside to avoid a humiliating defeat as the party met to pick its new leader, The Age said.

Party sources said Rudd was reduced to tears as he addressed his colleagues and announced his decision to stand aside as leader.

Just a year ago, Rudd rivaled Bob Hawke as Australia's most popular leader. He joins Hawke, Australia's longest serving Labor prime minister, who served from 1983 to 1991, as the only other Labor prime minister dumped by his own party, The Age said.

A series of policy failures, poor showings in polls and the decision to go to war with the mining industry over taxes all led to Rudd losing support from his Labor colleagues, analysts said.

Treasurer Wayne Swan will be the new deputy prime minister, ABC said.