The unemployment rate has hit a new 12-year high, despite a strong rise in the number of people with jobs.
South Australia’s rate dropped slightly to 6.6%.
Australia’s unemployment rate rose to 6.3 per cent in November, in line with market forecasts, from 6.2 per cent in October, official figures show.
The total number of people with jobs rose 42,700, which was more than twice what the market was expecting.
JP Morgan economist Tom Kennedy said while the figures were encouraging, most of the jobs growth came from part-time work, suggesting businesses were feeling less than confident.
“There was a pretty solid employment gain but a lot of that was in part-time work,” he said.
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“That’s not the composition you want because part-time work, typically, is representative of under-utilisation and firms are still remaining pretty cautious in permanently increasing their head count.
“At 6.3 per cent, the jobless rate is moving higher and it does suggest that slack in the labour market is accumulating.”
Full-time employment rose 1,800 in November and part-time employment was up 40,800, the Australian Bureau of Statistics said on Thursday.
ANZ Bank economic analyst Savita Singh said that while the figures show that the jobs market improved modestly in November, she expects the unemployment rate to stay at similar levels in the coming months.
“This report will not go far enough to dissuade those looking for interest rate cuts,” she said.
“While we acknowledge the risks lie in that direction, we think the probability of a rate cut remains below 50 per cent.
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“There is also little evidence in the high-frequency data to force the RBA’s (Reserve Bank of Australia) hand at present.”
Singh added that ANZ expected the cash rate to stay unchanged through most of 2015.
State unemployment rates
NSW – 6.0%t up from 5.8% in Oct
Vic – 6.8% unchanged
Qld – 6.9% down from 7.1pct
SA – 6.6% down from 6.7pct
WA – 5.2% up from 5.1pct
Tas – 6.9% unchanged
– with AAP
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