More women are looking for work in Australia

(Photo by Ian MacNicol/Getty Images)

The lift in Australia’s unemployment rate to 6.3% in July was driven by more women looking for work, CommSec Economist Savanth Sebastian said in a note.

The participation rate for women rose from 58.8 to 59.2 in July – a 6½ year high since February 2009.

“The real driver of the lift in unemployment was more people looking for work – not entirely a negative outcome. The participation rate lifted to 2½-year high,” he said.

“Interestingly the participation rate for women surged to a 6½-year high – in effect more women were looking to come back into the workforce. No doubt a healthier economy, improved job prospects, and more importantly a noted lift in job advertisement over the past year has resulted in more people searching for work – a result that should increase household incomes.”

This morning’s ABS jobs data showed employment rose by 38,500 in July. The unemployment rate also jumped from a revised 6.1% in June to 6.3% in July.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.