Unemployment plunges as economy begins to bounce back

Australia’s unemployment rate has seen an unexpected plunge in August, falling from 7.5 per cent to 6.8 per cent despite the situation in Victoria.

The figures have surprised experts, with most predicting the unemployment rate would increase to 7.7 per cent.

The economy added 111,000 jobs in the last month including 36,200 full-time positions and 74,800 part-time positions.


At the same time there was only a small increase in the number of people looking for work, with the participation rate rising 0.1 points to 64.8 per cent.

The number of people officially classed as unemployed fell by 86,500 to 921,800.

Underemployment remained steady at 11.2 per cent, while youth unemployment dropped 2 points to 14.3 per cent.

Victoria shed 42,000 jobs last month thanks to the state’s stage four lockdown.

However, with less people looking for work, its unemployment rate only increased by 0.3 points to 7.1 per cent.

South Australia has the country’s worst unemployment rate at 7.9 per cent despite no change in the last month.

Queensland’s unemployment rate bounced back from 8.8 per cent to 7.5 per cent with the state adding 18,000 jobs.

New South Wales saw it’s unemployment rate fall from 7.2 per cent to 6.7 per cent.