SKIP TO MAIN CONTENT

Unemployment tipped to hit four year high

The unemployment rate is expected to hit a four-year high, as companies postponed hiring until after the election.

A job advertisement in a newspaper
The unemployment rate is expected to hit a four-year high in August, as companies postponed hiring. (AAP)

2 min read

Published

Updated

Source: AAP


Skip to article content

The unemployment rate is expected to have hit a four year high in August, with businesses holding off on hiring until after the federal election.

Official labour force figures are to be released on Thursday morning, and the median forecast from an AAP survey of 11 economists is for the unemployment rate to rise to 5.8 per cent, from 5.7 per cent in July.

Unemployment hasn't been that high since August 2009.

The number of people with jobs is expected to have risen by 10,000 in August, compared to a fall of 10,200 in July.

But JP Morgan Australia chief economist Stephen Walters said jobs growth of 10,000 a month is not enough to absorb the increase in population and keep the unemployment rate from rising.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

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

"It is possible that firms held back hiring decisions close to the federal election, which would depress the August numbers," he said.

"It is difficult to disentangle the impact of an election from the prevailing macro backdrop of the time, but there is circumstantial evidence of a pre-election hiring stall in one recent case."

Mr Walters said there was a similar pattern ahead of the November 2007 election, when Labor defeated the John Howard-led coalition.

The participation rate - the percentage of the working-age population either in work or looking for a job - is expected to rise to 65.2 per cent in August, from 65.1 per cent in July.


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

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

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world