The silver lining of jobs gloom

The Bureau of Statistics revealed yesterday the jobless rate jumped from 4.9 per cent to 5.1 per cent in July — the highest in nine months.

Full-time employment fell by 22,200 people but that was offset by an increase in part-time employment of 22,100.

The rise in the number of people without work came as a surprise, with economists expecting 10,000 jobs to be created in July and the unemployment rate to be steady.

CommSec chief economist Craig James said the jobs market was “flat as a tack”. “We have seen the slowdown in the job market for a number of months now — employment is moving sideways.

“Businesses don’t seem to be putting on full-time staff but part-time instead, and they are working longer hours. We’ve entered a soft patch.”

In NSW the unemployment rate remained steady at 5.2 per cent. The state’s female jobless rate fell to 5.6 per cent — the lowest level since February — but the male unemployment rate rose to 4.9 per cent — the highest since October last year.

Mr James predicted the RBA would not lift rates “in this type of environment” but said the bank “wouldn’t want to be panicking either”.

ANZ chief economist Warren Hogan said the jobs figures showed industries heavily reliant on part-time employment were under pressure.

Jobs Minister Chris Evans played down the figures, saying the unemployment rate was “the envy of the world”.

“Australia’s labour market — like the Australian economy — remains resilient, particularly in the context of the chronic unemployment problems besetting so many other advanced economies.”

Opposition Leader Tony Abbott, back on the hustings yesterday after an overseas holiday with his family, called on the government to dump its “toxic” carbon tax.

But in an opinion piece for The Daily Telegraph today, Prime Minister Julia Gillard defended the tax, saying millions of households would be better off once the government introduced its tax cuts.

Article from The Daily Telegraph, August 2011.