News National Unemployment rate tipped to rise
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Unemployment rate tipped to rise

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Jobs growth in January is expected to have bounced after a weak result in December, but not enough to prevent another small rise in the unemployment rate.

Official labour force figures to be released on Thursday are expected to show the number of people with jobs rose by 15,000 in January, after a surprise fall of 22,600 in December.

January’s unemployment rate is forecast to rise to 5.9 per cent, from 5.8 per cent the month before, an AAP survey of 12 economists shows.

ANZ head of Australian economics Justin Fabo said the pace of jobs growth is still not enough to bring the unemployment rate down.

“Overall, most labour market indicators still suggest that underlying employment growth remains soft,” he said.

JP Morgan Australia chief economist Stephen Walters also said employment growth remained weak.

“Job advertisements and vacancies are still moving backwards, and the levels of the NAB business survey employment intentions index remain in line with the poor average level that has held through the Reserve Bank of Australia’s easing cycle,” he said.

“For this reason, we see little scope for relief from the upward trend in the unemployment rate in this week’s labour force survey.”