The seasonally adjusted unemployment rate rose to 4.3 per cent in June, according to data released today by the Australian Bureau of Statistics (ABS).
“This month we saw the unemployment rate rise 0.2 percentage points, driven by a 34,000 increase in the number of unemployed people,” said Sean Crick, ABS head of labour statistics.
Employment rose by 2,000 people this month, following a fall of 1,000 in May, and is up 2.0 per cent compared to June 2024. Part time employment grew by 40,000 people, offset by a 38,000 person fall in full time employment.
The employment-to-population ratio remained at 64.2 per cent, and the participation rate rose to 67.1 per cent.
Hours worked fell 0.9 per cent in June, following a rise of 1.4 per cent in May.
“This month we saw a decrease in full time hours worked, down 1.3 per cent, associated with a 0.4 per cent fall in full time employees,” Crick said.
Commenting on the data, KPMG chief economist Brendan Rynne said: “The key reason for this movement is that we saw full-time employment dropping by 38,000, while part time employment grew by 40,000 – a net pick up of 2,000 additional workers, which was swamped by a rise in 34,000 additional people looking for work.
“While quarterly inflation data is still a week or so away, today’s data will reinforce the weakness that is continuing within the private side of the Australian economy, and even by itself should be enough for the RBA to drop the cash rate at its next meeting.”
More to come.
