Australia’s unemployment rate smashed market expectations, increasing by 0.3 percentage points to 6.4% in July.
In the month of July another 43,700 became unemployed, pushing the total to 789,000 people.
The Australian Bureau of Statistics (ABS) said the seasonally adjusted labour force participation rate increased by 0.1 percentage points to 64.8% in July 2014.
And the number of people employed decreased by 300 to 11,576,600 in July 2014.
The market had been expecting better than 12,000 new jobs and an unemployment rate of 6%.
“The decrease in employment was due to decreased part-time employment, down 14,800 people to 3,499,200,” the ABS said.
“This was offset by increased full-time employment, up 14,500 people to 8,077,400. Decreases in male part-time employment and female full-time employment were largely offset by increases in male full-time employment and female part-time employment.”
The ABS monthly seasonally adjusted aggregate hours worked series decreased in July 2014, down 14.8 million hours (0.9%) to 1,610.7 million hours.
The seasonally adjusted number of people unemployed increased by 43,700 to 789,000 in July 2014, the ABS reported.
One thing to note on this release is there is an important methodology change which could add significant “noise” to this release.
The NAB said this morning that: “The methodology for measuring if someone is looking for work and unemployed, compared to not participating in the labour market, is changed in this survey. On the up side is that the intention to start your own business means a person is participating, on the downside, the criteria for “looking” for work has increased. That could cause some anomalies, so be careful with this one.”
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