Another month of solid jobs growth is not expected to be enough to bring the unemployment rate down from its highest level in 10 years.
Official labour force figures to be released on Thursday are tipped to show the number of people with jobs rose 12,000 in July, an AAP survey of 15 economists shows.
That would follow a gain of 15,900 in June, when the unemployment rate rose slightly to equal its 10-year high.
But the unemployment rate is forecast to stay steady at six per cent, as employment growth is not keeping up with the rising population.
“There is no doubt that there has been a credible lift in employment over 2014 with almost 90,000 jobs being added in the first six months of the year, marking the best start to a calendar year in six years,” CommSec economist Savanth Sebastian said.
“However employment growth is not enough to offset the lift in the work force.”
There are signs employers are becoming less reluctant to hire staff, which will help improve jobs growth later in the year.
“There does seem to be a shift from part-time to full-time jobs, which makes sense given that over the past year business profitability has improved, and now employers are seemingly adding more full time staff,” he said.
ANZ’S job advertisements survey, released on Monday, also showed the labour market could be bouncing back after a bout of weakness.
Job ads on the internet and in newspapers rose 0.3 per cent in July and were up 4.2 per cent for the year, ANZ said.
ANZ senior economist Justin Fabo expects the unemployment rate to stay close to six per cent into 2015.
“The global economic backdrop continues to gradually improve which is important for the Australian economic outlook given a number of domestic headwinds,” he said.
“The transition towards solid, self-sustaining non-mining growth is underway but remains relatively slow.”
Mr Fabo said many companies were finding it harder to find suitable staff.
“This gives us some confidence in our forecast of no further near-term deterioration in the unemployment rate,” he said.
The participation rate – those that have a job, are looking for work or are ready to start work – is forecast to hold steady at 64.7 per cent in July.