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Unemployment Rate Hits 5.7%
Australia, June 11, 2009 – Last month, job losses were pegged at an astounding 26,600 full-time losses. Companies are retrenching and shedding jobs as the economic downturn continues. According to the Australian Bureau of Statistics, this pushed the unemployment rate up to 5.7 percent from 5.4 percent in April.
New South Wales posted the highest unemployment rate. Overall, there were 24,500 part-time created, offsetting the losses from full-time positions. Economists are saying the jobless rate is on course to peak at 9 percent. Meanwhile, data released last week showed a slight expansion in the economy in the first quarter of 2009.
The Australian dollar jumped to 80.83 US cents on the announcement. This is an increase in almost half a US cent. Investors are investors are viewing that the latest jobless figures would reduce the chances of another interest rate cut by the central bank.The participation rate edged higher to 65.5 per cent from 65.4 per cent in April.
“The unemployment rate is rising mostly because the participation rate went up,” shares Nomura economist Stephen Roberts. ”So even with reasonably good employment performance, the unemployment rate is still inching its way higher.”
Source:
business.theage.com.au
