Sep 10, 2009, 5:08 GMT
Sydney - Australia's unemployment rate remained steady in August at 5.8 per cent of the workforce despite full-time positions falling by 30,800 and only 3,800 part-time positions created, official figures released Thursday showed.
The rate held steady because poor economic conditions led to fewer people looking for jobs.
The participation rate, a measure of those in work or looking for work against the total labour force, fell from 65.3 per cent in July to 65.1 per cent in August.
'What these figures are saying to us is that there are Australians who are not in the workforce who want to be in the workforce but don't believe they'll be able to get a job,' Employment Minister Julia Gillard said.
After most economists had predicted fewer jobs would be lost, the surprise figures led to the Australian dollar retreating in value against the US dollar.
Economists now expected the Reserve Bank of Australia to hold off on lifting interest rates until the job market improves. A rise from the 49-year low of 3 per cent would have given more reasons to buy Australian dollars.
However, unemployment was not expected to match the prediction of 10 per cent that the government had made in May.
Matthew Tukaki, general manager at the human resources consultancy Drake International, said the figures were 'increasingly trending towards an improving economy.'
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