Unemployment rises to 7.4% in June

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on July 16, 2020
Unemployment rises to 7.4% in June

Photo by madeleine ragsdale on Unsplash

Australian Bureau of Statistics data reveals the unemployment rate rose to 7.4% in June, up from 7.0% in May as more people look for work.

There was an increase of 210,800 employed people (seasonally adjusted) from May and June as COVID-19 restrictions were eased, according to Australian Bureau of Statistics' (ABS) head of labour statistics Bjorn Jarvis.

"The easing of COVID-19 restrictions in June saw an extra 280,000 people in the labour force, with more people in employment, and more actively looking and available for work," he said.

“In June, around 24% of the fall in employment through to May had been regained."

The 280,000 figure is a gross figure and does not account for people who subsequently lost their jobs.

However, 249,000 people rejoined the labour force in a part-time capacity, and there was a decrease by 38,100 in full-time employment. 

Unemployment data is in part measured by people actively looking for work, and in June the participation rate was 64%, up from 62.7% in May.

Hours worked also increased four percentage points in June, and the underemployment rate fell from 13.1% in May to 11.7% in June.

In April, when COVID-19 lockdowns peaked, the unemployment rate was a comparatively low 6.2%, thought to be lowered by JobKeeper and a fall in the participation rate i.e. people withdrawing from the labour force entirely. 

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 26, 2022. View disclaimer.

Young people experience mixed results

The 15-24 year old age bracket had an increase in the participation rate in June, up 3.9 points to 63.5%.

In June, 101,500 young people found work, however the unemployment rate increased by 0.4 points to 16.4%. 

For the wider labour force, if those that are working zero hours for economic reasons are added to the unemployment rate, that rate would sit at 8.8%, according to the ABS.

More to come with Melbourne lockdowns

Although there were signs of recovery in June, Melbourne experiencing a surge in COVID-19 and the city's corresponding lockdowns could set things back next month, according to Westpac Senior Economist Justin Smirk.

"Looking forward, the June update suggests we are past the worst for job losses and have entered a recovery phase," he said.

"However, that was before outbreak took off in Victoria resulting in the lockdown of the Melbourne regional area.

"And the improvement in employment opportunities has seen workers surge back into the labour force lifting participation.

"Even without the Melbourne lockdown, we would have been looking for unemployment to continue to rise from here on the back of rising participation.

"With that lockdown the risks lie to the higher side of our expectations."


Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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