Unemployment rate to tick a little higher

Jobs figures out on Thursday, are tipped to show the number of people with jobs rose by 15,000 in November, and the unemployment rate to rise to 6.3pct.

Australia is expected to post a second consecutive month of jobs growth but it won't be enough to stop the unemployment rate from rising.

Labour force figures, to be released on Thursday, are tipped to show the number of people with jobs rose by 15,000 in November, according to an AAP survey of 15 economists.

The unemployment rate is forecast to rise to a new 12-year high of 6.3 per cent, after being 6.2 per cent in October.

JP Morgan chief economist Stephen Walters said employment growth was being held back by weak spending across the economy and was not keeping up with population growth.

"We expect the unemployment rate to reflect the subdued pace of domestic demand," he said.

Mr Walters said the unemployment rate was very close to being rounded up to 6.3 per cent in October and he expects it to squeak a little higher despite solid jobs growth.

"Given that rounding was favourable for the jobless rate in October, even a modest underperformance relative to strong population growth will be sufficient to push unemployment from 6.2 per cent to 6.3 per cent," he said.

The November jobs report will be the Australian Bureau of Statistics's first since it changed how it calculates the seasonally-adjusted figures after admitting there were problems with the data in previous months.

ANZ chief economist Warren Hogan said the data pointed to a slowly improving jobs market.

However, he added: "We believe interpretation of the official labour force data warrants some caution given the significant changes that have occurred to the survey recently," he said.

Employment advertisements in November rose for the sixth consecutive month, up 0.7 per cent for the month and 8.9 per cent in the year to November, an ANZ survey found.

But, Mr Hogan expects economic growth to stay moderate in 2015, which will prevent employment growth from gaining momentum.

"While activity in the non-mining sectors of the Australian economy is slowly improving, growth overall looks set to remain moderate for some time," he said.

"Weaker commodity prices are likely to put further pressure on government finances and further constrain the ability for businesses to increase wages."


Share

2 min read

Published

Updated


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