Unemployment at 5.7%

Australia's latest unemployment figures released today show 5.7% of the workforce as unemployed. Depending on how you look at it that's up 0.1% or steady because last months figure was revised upwards to 5.7%.

The real worry is that jobs are not being created very quickly. There was a net rise of about 1000 jobs if you accept part-time jobs, which rose, to be as useful as full time jobs, which fell. Of course nobody does see them as equivalent so there was really a net fall in employment.

The participation rate also fell to 64.8%. While this is the lowest level since 2006 a quick look at the chart in the ABC News report shows that while there is a slight trend downwards this is not severe and may well indicate the relatively high level of unemployment and scarcity of full time jobs has put some job seekers off for now.

Australia considers 5% unemployment as 'full employment'. That's quite a high level to accept as full employment, but few OECD countries are achieving 5.7% let alone 5%. Use the link to the map below to see where Australia ranks (hover over a country to get the data).

Australia should be concerned about unemployment. Those unemployed suffer a lower standard of living and impose costs upon the economy and taxpayers. Rising unemployment also indicates slow growth and possibly skill shortages among the available workforce. If the upward trend in unemployment, which started in early 2012, continues it will require further policy measures to boost growth.

The ABC provide figures and commentary here

 

Click here to compare unemployment rates across the world