(CANBERRA) – On Thursday, according to a recent study by the Australian Bureau of Statistics (ABS), rate of unemployment in the country has jumped up to 6.4% during July, a peak value since 2002, raising questions on the future of federal budget’s role in damaging the Australian labor market.
However, total employment was a bit changed, down to just 300 jobs with expectations for a 13,000 rise and 6% unemployment rate.
Since 2007, for the first time now, Australian jobless rate is greater than that of America. Also, the dollar dropped to US 93¢ from US 93.51¢.
The increase cannot be explained by a rise in number of active people in employment or more job seekers. Anyhow, the rate of participation went from 0.1% to 64.8%. This includes the counting of people who had an interview for work and those who took steps to become an entrepreneur. ABS also considered ads in newspapers or on Internet as an active job search, indicating that they were same as jobs on notice boards.
Justin Fabo, senior economist at the Australia and New Zealand Bank (ANZ), said that the result was obviously worse than anticipated, but, he raised uncertainties whether the bureau surveyed any changes in sample of people and if the methodical changes were counted as unemployed.
“Moreover, most other labor market indicators are improving, at least slowly, so the jump in the unemployment rate does look odd in that regard,” Mr. Fabo also told with cautious hope that there had been “some improvements in the labor market this year, But it will probably be some time yet before unemployment declines consistently.”
Also, the rise in jobless rate is contradictory to the indicators such as ad index of ANZ’s jobs, which has indicated a gradual betterment in hiring. Meanwhile, the bureau admitted that it did not had enough money to measure the accuracy.