Australia’s unemployment level has jumped to its highest point in twelve years, climbing another 0.3 per cent from December’s unemployment rate.
The latest figures from the Australian Bureau of Statistics (ABS) revealed an estimated 12,200 jobs were lost in January alone, pushing January’s unemployment rate to 6.4 per cent.
The ABS has attributed the growth in unemployment to a decrease in full-time employment for both males (down 26,000) and females (down 2,100). Part-time employment has risen, up 15,900 jobs from the previous month.
While unemployment figures have continued down a negative path, the number of people currently working or looking for work (also known as the ‘participation rate’) has remained steady at 64.8 per cent.
In seasonally adjusted terms, the number of people unemployed in Australia increased by 34,500 to 795,200 in January.
Forecasts suggest it is highly likely the Reserve Bank will be cutting interest rates again quite soon. According to Diana Mousina, an economist at Commonwealth Bank, the next cut may be occurring next month.
“We think it’s a clear sign that the RBA will change the cash rate to 2 per cent in March,” Ms Mousina told Reuters.
“Their forecast has been for unemployment to peak at 6.5 per cent in mid-2016 we think there’s a chance that now the unemployment peak will be a little bit higher.”
The Australian Council of Trade Unions (ACTU) have pointed the finger at the current Government, saying “the only jobs plan Tony Abbott has is to save his own.”
“This is a government that is blinded by ideology – they are obsessed with passing their unfair budget cuts despite all the economic evidence that they are taking Australia completely in the wrong direction,” ACTU President Ged Kearney said.
“The Abbott Government must act to stimulate the economy and boost employment instead, and should do this by bringing forward infrastructure investment.
“The longer unemployment remains this high, the worse the social and economic outlook will be for Australia.”
