Australia June unemployment jumps to 22-year high

People sit on a bench overlooking the Sydney Opera House and Sydney Harbour Bridge in Sydney, Australia, Jun 29, 2020.

SYDNEY: Australia’s unemployment rate in June climbed to the highest in 22 years as workers re-entering the workforce were unable to find jobs, official data showed on Thursday (Jul 16).

The unemployment rate shot up to 7.4 per cent in June, from 7.1 per cent in May, and the highest since November 1998, according to figures from the Australian Bureau of Statistics.

The participation rate increased by 1.3 percentage points from May to 64 per cent, the most since April, as people not working because of the COVID-19 pandemic began seeking jobs.

That meant the jobless rate rose even as employment surged by 210,800 in June following declines in April and May. Economists polled by Reuters had expected an increase of about 112,000 jobs.

The employment rise was underpinned by a large increase in part-time jobs and a further decline of 38,100 in full-time work.

The figures highlight the economic damage wrought by the pandemic as strict mobility restrictions forced business to shutter since late March.

The economy began reopening in late May as Australia managed the coronavirus spread, helping businesses to rehire.

As a result, monthly hours worked in all jobs increased by 4 per cent in June though they were well below March levels. The average hours worked per employed person was around 31.1 hours per week, up from around 30.4 hours in May.

Australia is facing its first recession in nearly three decades with the country’s central bank predicting the jobless rate to hit 10 per cent by June and stay elevated through 2021.

The Reserve Bank of Australia has gone all-in by cutting rates to a record low of 0.25 per cent, flooding the financial system with cash and even buying government bonds to lower borrowing rates for business.

Z24 News

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Oil giants including Exxon set first joint carbon target

Wed Jul 15 , 2020
A group of the world’s top oil companies including Saudi Aramco, China’s CNPC and Exxon Mobil have for the first time set targets to cut their combined greenhouse gas emissions as a proportion of production, as pressure on the sector’s climate stance grows. FILE PHOTO: An Exxon sign is seen […]

Share

Social menu is not set. You need to create menu and assign it to Social Menu on Menu Settings.