MNI DATA IMPACT: Aussie Unemployment Rate Unchanged In July

By Lachlan Colquhoun

     SYDNEY (MNI) - Australia's unemployment rate had been expected to edge

higher, but was unchanged at 5.2%, data released by the Australian Bureau of

Statistics on Thursday showed. The rate was at a decade low of 4.9% as recently

as February.

     Here are the other key points from the release:

Unemployment unchanged 

The unemployment rate was unchanged even though 41,100 people found jobs in

July. With the participation rate up another 0.1 percentage points to a record

66.1%, the July result has continued the trend of recent months of the rate

increasing or remaining flat, while more jobs are added to the economy.

Key to monetary policy 

The Reserve Bank of Australia cut official interest rates in June and July down

to 1%, citing overcapacity in the labour market as a major reason for its

decision. In last week's Statement on Monetary Policy the RBA forecast

unemployment to be steady at 5.2% this year, before falling to 4.9% by June

2020. The Bank has indicated it believes full employment is achieved with an

unemployment rate of 4.5%.

Underemployment still high 

The underemployment rate is now closely watched as an indicator of capacity in

the labour market. Underemployment rose by 0.2 percentage points in June to

8.4%, meaning that 13.6% of the population is either unemployed and looking for

work, or would like to work more hours.

Full time and part time 

Full-time employment increased by 34,500 in July while part-time employment,

which fell in June, increased by 6,700.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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