Australian Unemployment Rises By 5.2%

17 July 2012 01:00 - Lucy Williams

Australian Unemployment Rises By 5.2%

With the Australian economy going from strength to strength Australian Prime Minister declares that other G20 leaders are envious of Australia’s economic situation stating that "It's one of growth, it's one of continuing low unemployment, it's one of strong public finances and it's one of strong banks.”

However Australia’s unemployment rate has recently risen slightly but it is not something to be concerned about as by world standards Australia’s unemployment rate remains low. The Australian employment minister believes that while there appears to be weaknesses in the labour market the Australian economy and employment sector was “hanging in there”. While Gillard believes that the figures are strong in comparison with other developed economies. Nevertheless Bill Shorten recognises that there will be more problems to come as the Australian Treasury Department expects a further slowing of the labour market.

Statistics for Australian unemployment rates have showed that employment within the country fell by 27,000 in June resulting in the unemployment rate rising to 5.2 percent, contradictory to the expectation that employment statistics were to remain flat during June. Employment was believed to have declined as a result of the strain of global uncertainty and the state of the Australian economy felt by employers.

Positive news for the Australian economy included the unemployment rate remaining below what it was in August last year and there being no apparent sign of further unemployment.

The Australian dollar makes further losses, falling from US$1.0240 to $1.0211 which not only increases the chance of unemployment but may also be seen as a cause for further interest rate cuts. Australia’s central bank has so far kept the country’s interest rate steady after May and June saw two rounds of cuts by up to 50 basis points. These cuts were made in an attempt to boost the Australian economy its recovery.

In other Australian economic news, Australian shares are once again trading higher after the release of encouraging Chinese economic data. Reports show that China, Australia’s biggest export partner or raw materials such as iron ore and coal, is fortunately showing economic growth after analysts had forecasted lower statistics. Figures for China’s growth were expected to fall below seven percent, affecting Australian stocks in the materials sector. Due to positive statistics for the second quarter of 2012, global markets have recently moved higher.