Long-term unemployment figures hit five-year high

By BN | 2/02/2010 12:00:00 AM | 0 comments

The number of people out of work for 12 months or more has risen to its highest point in five years and economists expect the figure to rise further, reports the AFR.

According to the Australian Bureau of Statistics, the long-term unemployment figure jumped 62% since last year.

The figure stands in contrast to reports that the broader labour market added 32,500 jobs in December and unemployment fell to 5.5% - it's lowest level since April.

The Reserve Bank of Australia is expected to announce changes to the official cash rate today. Financial markets have put the odds of a .25 percentage point rate hike at 71%. The change would bring rates to 4%.

Prime Minister Kevin Rudd has warned that families will be hurt if rates increase. He added that commercial banks had a responsibility not move rates even higher.

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