Lowe notes that "restructuring and the..........>

RBA: Lowe notes that "restructuring and the uncertainty about future demand is

likely to weigh on the labour market as it recovers. Adding to this complicated

picture is the fact that the unemployment rate is likely to increase further,

even with the recovery underway. This is because many of the people who lost

their jobs over recent times have been classified as not in the labour force and

so are not counted as unemployed. As the labour market continues to improve, we

expect many of these people will start looking for jobs, and thus be classified

as rejoining the labour force. This will push up the measured unemployment rate

at the same time that the share of the working-age population with a job is also

rising. We saw an example of that in the figures for June, released last week,

when despite employment increasing by a record 210,000 people, the unemployment

rate also rose to 7.4 per cent, a 21-year high."