Economists warn unemployment rate could rise above 5 per cent

Although the unemployment rate has been gradually rising, there are concerns about the possibility of a significant increase in the jobless rate. Account manager Michael (not his real name) from Sydney started looking for a job right away after losing his job in August of last year. He was in his 40s.

A director at recruiter Robert Half, Nicole Gorton, told PM many more students, migrants, and returning ex-pats are entering an already well-supplied labor market. It’s made the job hunt highly competitive, and Ms Gorton said their agency is now receiving hundreds of applications for each job opening.

The obvious question then is, why does official unemployment data show a jobless rate at 4.1 percent in June, which the ABS describes as “relatively tight”? University of Canberra economist Leonora Risse said anecdotal evidence of harder and longer job searches often preceded higher unemployment.

What you’re describing is the shift in the unemployment rate from 4% to 4.1% and possibly the lengthening of time it’s taking job seekers to secure employment,” she informed PM. “There might be a greater search effort. “Finding jobs that fit workers is the key to reducing unemployment.