St George Bank chief economist Besa Deda says new jobs creation is ‘saggy’.
Photo: Mayu Kanamori
The number of people unemployed rose to 5.7 per cent in June, the highest point in nearly four years as the rate of jobs created could not keep up with the volume of people entering the workforce.
The June figure came with an upward revision to 5.6 per cent for the May jobless rate.
The June data marked the highest rate of unemployment since 2009 and St George Bank economists believe the “saggy baggy” jobs market could unemployment to 6 per cent later this year.
St George Bank chief economist Besa Deda told clients the most worrying aspect of the number is what it signalled for full-time employment.
“Full-time job creation is saggy,” Deda says.
“There were only 64,000 full-time jobs created in the year to June, not much of an improvement on 2011-12 and significantly down on the 214,000 jobs created in 2010-11.”
Annual part-time employment growth was at 2.8 per cent and full-time jobs growth came in at only 0.8 per cent.
With one eye on the low level of confidence among businesses, Deda believes the jobs data leaves a lot of room for the Reserve Bank of Australia to cut rates again in the coming months.
“The jobs outlook suggest the pressure remains on the RBA to tap on the accelerator again.”