Unemployment ticks higher in July, but remains steady seasonally adjusted

Unemployment ticks higher in July, but remains steady seasonally adjusted
Unemployment ticks higher in July, but remains steady seasonally adjusted

Unemployment ticked slightly higher in July, but remained steady on a seasonally adjusted basis, firm over July, according to the latest figures form the ABS.

The unemployment rate was predicted to remain unchanged at 5.2 percent in July, seasonally adjusted, with an increase of around 14,000 jobs tipped.

In trend estimates however, unemployment rose to 5.3 percent.

There were 41,100 jobs added over the month.

Full time employment increased by 34,500, with part time employment rising 6,700.

IFM Investors economist Alex Joiner said employment growth was strong with the amount of jobs added over the month. There had been just 500 jobs added in June.

"The unemployment rate tracked sideways at 5.2% despite rising participation, potentially giving the RBA another month to assess the data," Joiner said. 

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Unemployment ticks higher in July, but remains steady seasonally adjusted

South Australia now has the highest unemployment rate in the country, seasonally adjusted at 6.9 percent.

Unemployment declined in New South Wales, Queensland and Tasmania.  

ABS chief economist Bruce Hockman said Australia's trend unemployment rate increased to 5.3 per cent in July 2019, the same level as this time last year.

"The trend participation rate increased further to 66.1 per cent, while employment growth continues to show strength," Hockman added.

Former RBA economist Callam Pickering says Australia still has a two speed labour market.

"Unemployment rate in NSW (4.5%) and VIC (4.8%) much better than in other parts of the country. SA (6.3%), QLD (6.4%) and TAS (6.7%) particularly troubling," he said.

Over the past year, trend employment increased by 339,200 persons (2.7 percent) which was above the average annual growth over the past 20 years (2.0 percent).

Australia doesn't come close to making it into the top 16 countries for unemployment rate.

South Africa has an unemployment rate of nearly 30 percent, while Portugal, who are 16th on the list, have 6.8% of the population unemployed.

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Rba Rate Decision Unemployment

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