Unemployment to remain steady

Written By Unknown on Rabu, 08 Mei 2013 | 23.48

THE unemployment rate is expected to have been steady in April although is likely to rise over the next six months.

The Australian Bureau of Statistics will release its labour force figures for April on Thursday.

An AAP survey of 14 economists shows a median forecast for the unemployment rate at a steady 5.6 per cent for April with total employment numbers growing by 11,000, which is too low to keep up with population growth.

The participation rate, the percentage of the working age population either employed or looking for a job, is expected to remain at 65.1 per cent.

Bank of America Merrill Lynch Australia chief economist Saul Eslake expects the figures to show modest jobs growth, but says the unemployment rate is likely to increase over the coming months due, in part, to the effect of the high Australian dollar.

"As firms start to lift productivity in response to the view that the exchange rate will stay higher for longer, that will result in a gradual trend upwards in unemployment," he said.


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