September Unemployment 5.2%, Forecast To Climb
Australia’s unemployment rate has reportedly remained steady at 5.2% easing pressure on the Reserve Bank of Australia, though forecasts predict this reprieve will not last due to poor job advertisings.
According to the Australian, despite growing uncertainty around Australia’s economic outlook, 14,700 jobs were created in September, with full-time positions increasing to 26,200.
It comes after 34,700 jobs were created in August, more than double the 15,000 jobs expected that month.
However, the fall in unemployment may be cut short as Capital Economics economist Marcel Thieliant predicts the jobless rate will rise again soon.
Employment surveys are pointing to a slowdown in growth to around 2% by early next year with ‘falling job vacancies suggest that the slowdown could be even more pronounced’ said Mr Thielant.
The RBA is hoping to move closer to its goal of achieving ‘full employment, which is estimated to be an unemployment rate of 4.5% or lower.
Unfortunately with job advertisements remain stagnant in recent months, Mr Thieland suggests further rate cuts are still needed, reiterating an expected cut to 0.5% in December.
Market forecasts in August initially predicted 4.2% unemployment.