Australia’s unemployment has risen to 7 percent, with 25,000 Australians now looking for a job.
In October, unemployment rose to 0.1 percent as revealed by the latest figures from the Australian Bureau of Statistics compared with the previous month. It reflects the first month since the federal government tapered JobKeeper and JobSeeker payments.
Unemployment for the month of September was 6.9 percent.
178,800 people found a new job despite the increase in the unemployment rate and total hours improved by 1.2 percent.
Axi chief global markets strategist Stephen Innes said the result was stronger than expected. However, monthly employment data sets were “notoriously volatile”.
“An improvement in labour market conditions is a necessary, but not sufficient, condition for the RBA (Reserve Bank of Australia) to move away from ultra-accommodative monetary policy,” he said.
“Nonetheless, this data release supports the (RBA) board’s view that negative rates are extraordinarily unlikely…”
Unemployment rate said to rise to 7.2 percent, primarily due to the tapering of JobKeeper payments as expected by ANZ economists.
Westpac had also tipped a 7.2 percent unemployment rate, with the number of jobs falling by 30,000. It was expecting the participation rate to ease to 64.74 percent.
The expansion in the workforce was being driven by self-employed people re-entering the jobs market says CommSec chief economist Craig James.
“The complication in the latest data is that self-employed workers or owner-managers are flooding back to work from outside the labour force,” he said.
“Economic recovery is in everyone’s hands. Consumers need to spend; business needs to respond to incentives and take back existing workers as well as take on new workers.”
In October, employment was only 1.7 percent below March level says Mr. Jarvis, reflecting a large flow of people from outside the labour force re-entering the workforce.
Unemployment rates are calculated on the number of people actively look for work.
The second lockdown has caused Victoria to experience the largest surge in its regional unemployment rate, which rose 0.7 percentage points to 7.4 percent.
Tasmania has the highest level of unemployment at 8.2 percent, followed by Queensland at 7.7 percent.
NSW experienced the biggest improvement, falling 0.7 percentage points to an unemployment rate of 6.5 percent.
The Australian Capital Territory has the lowest unemployment rate at 3.9 percent.
In the daily charts of AUD/USD, the pair edged up early Friday morning in Asia Session.
As what we can see in the daily charts, the Aussie dollar is continuing to surge up against the dollar. The pair is still being supported at the support level at 0.72382.
At next week’s trading session, we can expect the Aussie dollar to continue its bullish momentum as long as the price keeps being supported at the support level at 0.72382 and may test the resistance level at 0.74129.
However, if the pair will breakdown from this support level, the pair may continue to full and re-test the support level at 0.69952.
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