Labour Force – July 2013

Today’s 10.2k fall in jobs in July was worse than market expectations, which centred on a small rise of 5k {CBA (f) +12k}. The unemployment rate was stable at 5.7% thanks to a slight fall in the participation rate to 65.1% and a 5.7k fall in the number unemployed.

The jobs market appears to be gradually deteriorating, with jobs growth over the past year just below the new additions to the workforce. The result is an upward trend in the unemployment rate. The leading indicators of the jobs market remain reasonably pessimistic but they have been, in our view, exaggerating the job losses underway in the economy.

Some sectors have been losing jobs under the restructuring pressures stemming from a relatively prolonged period of a high AUD. There have also been shifts in consumer spending and savings, and significant changes in technology take-up by households and businesses that undermine parts of the retail, advertising and media sectors.

Read the full report: Market Research


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