Unemployment hovers near 7%

By Lachlan Maddock

— 1 minute read

15 October 2020

Unemployment has risen to almost 7 per cent in September following an unusually strong showing in August.

Unemployment hit 6.9 per cent between in September as the economy lost 30,000 jobs. Full-time employment decreased by 20,100 and part-time employment fell by 9,400. The increase is slightly short of forecasts of a 7 per cent unemployment rate, but unemployment is still expected to hit 8 per cent before falling gradually over the mid- to long-term.

“The September data provides further insights into the labour market impacts from the Stage 4 restrictions in Victoria,” said ABS head of labour statistics Bjorn Jarvis.

“Employment in Victoria decreased by 36,000, following a fall of 37,000 in August. Hours worked in the state fell by a further 2.1 per cent, following the 4.6 per cent fall in August.”

The underemployment rate increased by 0.1 per cent to 11.4 per cent, 2.6 per cent above March. Under-utilisation – which combines underemployment and unemployment – also rose 0.2 per cent to 18.3 per cent, remaining 4.3 per cent higher than in March.

“The data also showed that hours worked rose by 0.5 per cent, following a small decrease in August (0.1 per cent). However, hours worked were 5.1 per cent below March,” he said.