July unemployment at 6.4% - highest for 12 years

July unemployment at 6.4% - highest for 12 years
July unemployment at 6.4% - highest for 12 years

Property investors will be watching the fallout as the Australian unemployment rate increased 0.3 pts to 6.4% in July.

The unemployment level increased 43,700 to 789,000, according to the ABS.

Victoria's unemployment sits at 7%.

The number of unemployed persons looking for full-time work across Australia increased 21,900 to 566,400 and the number of unemployed persons only looking for part-time work increased 21,800 to 222,600.

The employment level decreased 300 to 11,576,600. Full-time employment increased 14,500 to 8,077,400 and part-time employment decreased 14,800 to 3,499,200.

With monthly volatility prevalent, economists often focus on the trend, which shows unemployment steady at 6.1%, and 0.4 of a percentage point higher than last July.

The ANZ senior economist Justin Fabo suggested the 6.4% was weaker than expected.

"But given the sample rotation effect on both employment and unemployment and the potential for some impact from the methodological change on measured unemployment it is very difficult to get a clear read.

"Moreover, most other labour market indicators are improving, at least slowly, so the jump in the unemployment rate does look odd in that regard.

"We’ll need the August report to confirm that view."

 

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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