Unemployment hits ten year high

Unemployment has risen to 6%, that's the worst it has been for ten years.

In global terms 6% isn't that high and just 3700 fewer jobs were available compared to last month. But what is really worrying is that most economies are seeing unemployment head in the opposite direction.

The charts below compare unemployment in some major economies to Australia.

 

Compared to the Euro Area, Australia is doing better, with about half the unemployment rate of that region, but the trends in the data are similar and we all know Europe is a basket case.

Compare this to the trends in the UK and USA. Unemployment is falling quickly and this is a very stark contrast to Australia. 

Of course Australia did much better than any European country and the USA after the GFC, but the current trend suggests that there is very great cause for concern. Usually developed economies see their economic fortunes move together. This is due to the strong links between economies through specialisation and trade. It would seem that Australia is not on a different economic cycle to the large developed economies.

Is there a bright side? Well Australian unemployment is still lower than the UK or USA and their growth will mean larger export markets for Australia. With fall in the value of the dollar that should help.

The Age reports the unemployment figures here