Unemployment to hit four-year high

The unemployment rate is expected to hit a four-year high as mining investment slows and the rest of the economy fails to pick up the slack.

The unemployment rate is expected to have risen to a four-year high in July as the rate of hiring in the mining sector slows.

The Australian Bureau of Statistics (ABS) will release its monthly labour force figures on Thursday morning.

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 June.

Australia has not had an unemployment rate of 5.8 per cent since August 2009.

The number of people with jobs is expected to have risen by 10,000 in July, compared to a gain of 10,300 in June.

JP Morgan Australia chief economist Stephen Walters said employment growth was not keeping up with population growth and the expansion of the workforce.

"We forecast a 15,000 net gain in aggregate employment for last month, but a larger expansion of the labour force," MR Walters said.

"The jobless rate, then, has to rise."


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Source: AAP


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