As expected, the official unemployment figures released by the Australian Bureau of Statistics (ABS) today showed a sharp rise in unemployment. According to the ABS, unemployment now sits at 5.4 per cent – a two and a half year high.
The key driver to the increase in the unemployment rate was a rise in the participation rate showing there are more people now participating in the job market.
Last week, we reported on comments from Roy Morgan suggesting the reason why unemployment was steady was due to retrenched employees taking holidays before attempting to re-enter the work force. It appears holidays could be over with more people trickling back into the job market and looking for work.
According to a Roy Morgan survey, unemployment sits closer to 10 per cent.
» Unemployment jumps on rising participation – The ABC, 11th October 2012.