Unemployment rate expected to rise

The unemployment rate is expected to have hit 6.2 per cent in January, as employment growth slows from recent months.

Employment growth is expected to have slowed in January, meaning a slight rise in the unemployment rate.

Figures to be released on Thursday are expected to show the number of people with jobs rose 7,500 in January, according to an AAP survey of 14 economists.

The economy added a whopping 37,400 jobs in December, 44,900 in November and 16,700 in October.

The unemployment rate is forecast to rise to 6.2 per cent for January, from 6.1 per cent in December.

A month of weak employment growth is inevitable after strong gains in recent months, Commonwealth Bank economist John Peters said.

"The labour market over 2014 was reasonably soft, although jobs growth in November and December appeared to strengthen somewhat," he said.

"Despite soft jobs growth over 2014, the unemployment rate has held at just over six per cent - and not ratcheted higher over this period, because of a falling participation rate."

The Reserve Bank last week downgraded its economic growth forecasts by a quarter of a percentage point, and said the unemployment rate was expected to peak a little higher than previously expected.

"The timing of the recovery in non-mining business investment has been pushed out until later in 2015," the RBA said on Friday.

ANZ chief economist Warren Hogan expects the unemployment rate to peak at 6.5 per cent.

He said the jobs market was improving in some parts of the country while people were losing their jobs in others.

"In particular, the relative strength of NSW job ads stands out, and is consistent with other indicators highlighting the state's outperformance," he said.

"A gap between job ads and the official data remains, however, most likely reflecting a higher rate of retrenchments in industries such as manufacturing and resources, which suggests that overall labour demand is struggling to keep pace with the flow of new workers into the economy."

The ANZ job advertisements series rose for the eighth straight month in January.

FINDINGS OF AAP'S JOBS SURVEY FOR JANUARY

* Unemployment forecast to rise to 6.2 pct, from 6.1 pct in Dec

* Number of jobs created to rise by 7,500

* Participation rate to be steady at 64.8 pct

* Employment growth forecasts ranged from a gain of 15,000 to a fall of 20,000

Source: AAP survey of 14 economists


Share

3 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world