Despite the increase in the unemployment rate for July, analysts do not expect the Reserve Bank to shift in its outlook for the economy as it had previously forecast it to peak to around 6.5 percent.The central bank is due to release its quarterly reading of the economy in its Statement of Monetary Policy on Friday. The participation rate climbed to its highest in two years at 65.1 percent. “Job advertisements, hiring intentions, the NAB business survey, and consumer surveys of the labour market outcomes all suggest a stable to perhaps falling unemployment rate”, he said.
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The total number of people with jobs rose 38,500 in the month, the Australian Bureau of Statistics said on Thursday, which was better than expectations of a rise of 10,000.
The labour force stood at 145 100, while those persons not actively looking for work, hence excluded from the labour force, were 77 300.
The Australian dollar slipped slightly to 73.43 US cents after the data was released.
The number of people in full-time work rose by 12,400 while those in part-time work increased by 26,100.
The Bureau said the unemployment rate in the second quarter (Q2) of the year rose to 8.2 per cent from the 7.5 per cent rate it was in the preceding quarter.
Australia’s unemployment rate has jumped to 6.3 per cent.
“Construction jobs growth in the dwelling sector is probably helping offset job losses in the mining sector in the wake of the fade out of the mining investment and construction booms”, he said.
Despite unemployment edging up, Australia’s labour market has been surprisingly resilient compared to the overall economy.
Employment Minister Gail Gago welcomed the fall but said there was still a long way to go for the state’s struggling economy.
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Treasurer Joe Hockey said if the participation rate had stayed the same, unemployment would have been 5.9 per cent. Underemployment rate in the rural areas was 22.1 per cent during the April- June review quarter. On quarter, the change was up 0.3 percent – also below expectations for 0.5 percent and down from 0.7 percent.
