Unemployment steady, but what next?

In a surprise set of figures Australia's unemployment rate remained at 5.8%. Many expected a rise after last months surprise fall.

There were over 14,000 new jobs created and unemployment actually fell a little (by 400). However the participation rate fell again and this indicates that more people 'left' the workforce as they stopped looking for work.

The table below is from the ABS.

When looking at the figures concentrate on trends. These are over the last year, rising employment, steady/falling unemployment and a falling participation rate. These can be seen in the last column.

The question of where unemployment goes next is a big one. The two articles below, both from the Sydney Morning Herald, take opposite lines. One says unemployment may have peaked, the other that the next two years will see much higher unemployment.

ust

Look at the factors each article considers is driving employment. this is a classic 'headwinds' and 'tailwinds' situation. Some factors are pushing the economy one way and some the other. You must be aware of these different factors.

Unemployment peaked? - SMH here

Tidal wave on unemployment coming - SMH here