Australia’s unemployment rate has increased from 7.1 per cent to 7.4 per cent in June despite a huge number of jobs returning to the economy.
It’s the highest unemployment rate recorded in Australia since November, 1998.
According to the Australian Bureau of Statistics, overall employment increased by 210,800 between mid-May and mid-June as restrictions were eased across the country
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That accounts for almost a quarter of the jobs that were lost at the height of the COVID-19 pandemic.
There was a massive rise of 249,000 part-time positions, but this was offset by a fall of 38,100 full-time jobs.
An estimated 280,000 people returned to the workforce last month, boosting the participation rate by 1.3 points to 64 per cent.
As a result, overall unemployment increased by almost 70,000 to 992,300.
The number of hours worked in June was up by 4 per cent but is still 6.8 per cent lower than it was in March before the shutdown of the economy.
Underemployment was down 1.4 points to 11.7 per cent.
New South Wales recorded the biggest jump in employment in June with an increase of 80,800, followed by Queensland which saw an increase of 52,900.
All states and territories saw an increase in participation rates which has also seen the overall unemployment rate rise everywhere except Queensland and the Northern Territory.
South Australia recorded the highest unemployment rate at 8.8 per cent (up 0.9), followed by Western Australia on 8.7 per cent (up 0.6) and Queensland on 7.7 per cent (down 0.1).
Victoria’s unemployment rate increased by 0.6 points to 7.4 per cent, New South Wales saw a jump of 0.5 points to 6.9 per cent, equal with Tasmania (up 0.6).
The ACT’s unemployment rate increased by 1 point to 5.1 per cent while the Northern Territory saw a big drop of 1.8 points to 5.7 per cent.