Australia’s jobless rate at eight-month high
Figures today revealed Australia’s unemployment rate jumped to 5.1% in July – the highest rate since November 2010.
The latest figures suggest the economy is struggling after being hit by flood and cyclone disasters earlier this year.
Australia, dubbed the “wonder from Down Under”, is one of the few developed economies not to have fallen into recession like its counterparts throughout the world as it has benefited from an increase in commodity prices, while exports have received a boost due to demand from China for its iron ore and other raw materials.
However, the economy contracted in the first quarter after the twin catastrophes led to a fall in coal and agricultural exports.
Meanwhile, as a result of today’s unemployment figures, analysts say the Reserve Bank of Australia (RBA) may re-assess its interest rate policy.