Jobless Statistics to Reach More Than 6%

Bad news for Aussies looking for work! 

According to Brian Redican, unemployment rate in the country may reach more than six percent next year. Redican is a senior economist from Macquarie. 

Redican said the jobless rate is growing faster than anticipated. It is a double whammy as more baby-boomers are retiring while more youth are opting to stay in school longer than required. 

Last June, the unemployment rate was posted at 5.2 percent, a slight increase over the average of five percent. The Macquarie senior economist said June’s data may give everyone a false sense of security when it should not be the case. 

Based on official data, about 47,000 new jobs only were created in the last financial year. This is not a good number compared to 220,000 jobs created the year earlier. 

The lack of employment opportunities is forcing more students to stay in school rather than actively look for a job. Redican said that the rate of Aussies at an employable age who are looking for work dropped last month to 65.2 percent. He expects that the number will continue to drop as more baby-boomers will move to retirement. 

According to Redican, about 50,000 Aussies will leave the workplace this year. This is a far bigger number compared to the annual average of 20,000. 

A low unemployment rate is seen by many as a positive sign of a growing economy. It provides business and consumer confidence, and shows that the economy continues to be robust. 

Industry observers say it is important that the government and businesses work together to continue creating new jobs.