Unemployment jumps, but worker pay rising

by Adam Smith08 Jun 2012

A rise in full-time workers has not helped stave off a slight jump in joblessness.

ABS figures have indicated the unemployment rate increased 0.2% to 5.1% in May. The move was foreshadowed by a 2.4% drop in job ads for the month.

While the number of people in full-time work grew by 46,100 for the month, unemployment increased by 22,400 people.

Underemployment remains an issue as well, at 7.4% in May. The ABS said that, combined with the unemployment figures, underemployed workers bring the labour force underutilisation rate to 12.6%.

In spite of the rise in joblessness, some good economic news may hold the RBA at bay for longer than expected. Wednesday's national accounts figures showed a 1.3% rise in GDP for the March quarter, including a 2.5% increase in the compensation of employees.

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