Number in work rises, while hours worked falls

Australia’s seasonally adjusted unemployment rate rose to 5.8 % in October, up 0.1 % since September.

Meanwhile, the number of people employed increased by 24,500 the ABS has reported – most financial commentators had expected a fall.

Unemployment rose because the number of people looking for work rose faster than new jobs were created.

The rise in employment was driven by an increase in part-time employment, up 21,500 to 3.241 million.

Full-time employment increased 2,900 to 7.591 million persons.

The number of people unemployed increased by 11,100 in October to reach 670,100, the highest level since January 2002.

The ABS seasonally adjusted monthly aggregate hours worked series fell in October, down 1.9 million hours (to 1,521.1 million hours) from September.

Regional Employment

Not all states reported job gains:

Queensland: unemployment fell from 6.3 % to 6.0 %.
New South Wales: unemployment rose from 5.5 % to 6.1 %.
Victoria: unemployment unchanged at 5.7 %.
South Australia: unemployment fell from 5.7 % to 5.3 %.
Western Australia: unemployment fell from 5.7 % to 5.0 %.
Tasmania: unemployment unchanged at 5.4 %.

Interest Rates Up, Dollar Up

The Reserve Bank has raised interest rates twice in the last two months. Today’s better than expected employment news makes it more likely interest rates will be raised again. The Australian dollar rose strongly today in anticipation of a further interest rate rise.