- James McIntyre, Macquarie senior economist
Australia's jobless rate rose slightly in June, while the employment change increased unexpectedly, according to the Australian Bureau of Statistics. The unemployment rate climbed to 6.0% in the reported month, up from a revised 5.9% in May. However, the Australian economy posted a net 7,300 rise in jobs in June, totalling 11.769 million. Economists, however, had expected a 5,000 decline. The participation rate, which measures the number of people either employed or are actively looking for work, remained virtually steady at 64.8%.
The Australian economy has experienced an unsteady transition from an unprecedented boom in mining investment, which has helped the country prevent recession for more than two decades. However, the recent sharp fall-off in resources investment has yet to be fully replaced, with spending by non-mining firms still remaining sluggish. The jobless rate climbed over the past year, peaking at 6.3% in January and October last year, the highest level in almost 13 years. The Reserve Bank of Australia slashed rates to a new all-time low of 2.0% in May to underpin growth in non-mining sectors. Meanwhile, the resources-dependent economy has been hurt by the sharp decline in key commodity exports, particularly its largest export iron ore.
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