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Unemployment rate to fall below 5.2%

The unemployment rate is predicted to stay at 5.2 percent, with the number of unemployed people seeking work continuing to decline at the recent trend rate.

Jobless ABSThe number of unemployed seeking help to find a job continued to fall in June, according to the latest data from national job agency, PVS Workfind.

PVS Workfind’s Job Seeker Index shows commencements (job seekers who register for employment assistance) fell by 5.5 percent in June, after a fall of 5.2 percent in May, indicating that the Australian Bureau of Statistics unemployment data due out today will show the unemployment rate sliding further below its current 5.2 percent for May.

“The number of job seekers walking through our doors has been falling all year,” said Barry Borzillo, CEO of PVS Workfind’s parent company ESH Group. “As the economy continues to improve, there are fewer people seeking our help to get a job.”

However, the Index also shows job seekers placed into jobs fell by 5.8 per cent in June, after rising 6.0 per cent in May, indicating there is still caution among employers.

“The dip in job placements in June comes off the back of several good months, so the trend is still positive,” said Borzillo. “But it does suggest a recent weakening in employer confidence due to factors such as the impact of three recent interest rate hikes and international uncertainty.”

Mr Borzillo said a more resilient labour market means the company’s caseload mix is shifting to assisting job seekers with higher barriers to employment.

“The recovery-led decline in unemployment has been faster than previous downturns. The work-ready are finding jobs more quickly than expected, so our caseload has shifted towards those job seekers who are more disadvantaged and who remain reliant on providers like us to assist them to develop skills and become more work ready.”

“What this means is that we are continuing to ensure our resources are devoted to those most in need; to ensure they are skilled and job ready when the competition for jobs lessens.”