Australia Jobless Rate Seen Steady at 4-Year High in September

TEHRAN (Tasnim) - Australia's unemployment rate is expected to hold steady at a four-year high in September, but analysts suspect a rise to 6 percent and above, levels not seen in a decade, is only a matter of time with the economy still struggling to gain momentum.

Australia Jobless Rate Seen Steady at 4-Year High in September

Official data on Thursday is expected to show the unemployment rate unchanged at 5.8 percent in September despite the creation of 15,000 jobs, median forecasts in a Reuters poll show. Employment fell in both July and August.

National elections on September 8 are expected to have provided a temporary boost to employment, but longer-term pressures on the jobs market remain, Reuters reported.

Miners are expected to keep shedding jobs as they shift to a less labor-intensive phase after an investment boom and cut costs, while firms in other sectors are cautious about hiring as they face a still-strong currency and uncertain global outlook.

As such, analysts said the jobless rate should trend higher. It has already risen from a low of 5.0 percent in April last year, and a move to 6 percent and above would take it to highs not seen since mid-2003.

The Reserve Bank of Australia is predicting modest employment growth into 2014, reflecting an economy that is growing at a below-potential pace.

That would drive the jobless rate gradually higher for a year or so, before leveling out and then declining as the economy eventually picks up steam, the RBA has said.

 

 

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