Falling unemployment spurs hopes of virus recovery in Australia
The country is experiencing its first recession in almost 30 years because of the pandemic.
SYDNEY: Australia’s unemployment rate fell slightly to 6.8% in August, spurring hopes that the worst of a coronavirus-fuelled recession may have passed.
The country’s statistical agency said Thursday that unemployment had fallen 0.7 points from the 7.5% rate posted in July, with the economy adding 111,000 more jobs.
Australia is experiencing its first recession in almost 30 years, prompting the government and central bank to embark on a vast stimulus spending programme to avert a full-blown depression.
Around a million people have lost their jobs and many more have been forced to take pay cuts or seen hours slashed.
Thursday’s figures smashed economists’ forecasts of a rise in the unemployment rate to around 8%.
But beyond the headline figure – which is seasonally adjusted – there was some cause for concern.
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The number of people present in the job market, hours worked and underemployment remained largely unchanged – pointing to an economy still in serious pain.