Jobless rate tipped to rise in June

The latest workforce figures for June are expected to show the unemployment rate rose to 6.1 per cent amid a slowdown in new jobs creation.

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Unemployment is believed to have bumped higher in June due to a decline in the creation of new jobs. (AAP)

Unemployment is believed to have bumped higher in June thanks to a slowdown in the creation of new jobs.

Official figures to be released on Thursday are likely to show the jobless rate rose to 6.1 per cent, according to an AAP survey of 11 economists.

The forecast comes after record low interest rates and sluggish wages growth helped push unemployment to its lowest level in a year in May.

It fell to a seasonally adjusted 6.0 per cent, from a downwardly revised 6.1 per cent in April.

St George senior economist Janu Chan said unemployment figures can be volatile month to month.

"(June's) soft employment picture is generally some pullback from strong previous months," she said.

The economy added 42,000 jobs in May, taking the total to 11.76 million.

However employment is expected to have fallen by 5,000 in June, according to the median forecast from the survey.

Economists' forecasts on that measure vary widely, ranging from the creation of 15,000 new jobs in June to a loss of 17,000.

Ms Chan said Thursday's labour force data wouldn't come as a surprise to the Reserve Bank, or influence any rate cut decision.

"The RBA is still in `wait and see mode'," she said.

"It still expects the unemployment rate to edge higher and for economic growth not to pick up to trend until next year."

The majority of economists surveyed expected the participation rate to remain steady in June at 64.7 per cent.


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Source: AAP


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