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Unemployment and Wages are an important metric to a country’s economy, simply put, if there are more members of the population at work and wages are at a good level, it may indicate that people have more purchasing power. This can help economic growth and can improve the health of the GDP. A growing economy should have an employment rate that is proportional to growth in the GDP. Economic growth should ideally emerge from a suitable combination of productivity growth and employment growth. Creating jobs and incomes is crucial for development and thereby the GDP.
In August, the unemployment rate increased ever so slightly to 3.5% up from the previous month, which was a record low and had a market forecast of 3.4% as seen below.
The number of unemployed Australians increased by 14,000 to 487,700, with the number of people looking for full-time jobs rising by 15,500 to 332,100. While those part-time work decreased by 1,400 to 155,600. Meantime, employment climbed by 33,500 to 13.59 million, compared with a forecast increase of a 35,000, as full-time employment increased by 58,800 to 9,468,500 while part-time employment fell by 25,300 to 4,123,600. The participation rate grew to 66.6% from 66.4% in July which matched consensus. Monthly hours worked in all jobs rose by 14 million to 1,854 million hours.
Due to a unique combination of massive amounts of fiscal stimulus, ultra-loose monetary policy, closed international borders and a widely vaccinated population, the unemployment rate has been driven down quickly to 4 per cent, a 13-year low.
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