Australia's Unemployment Rate jumped to 5.7% in May, matching that of March and met a high last seen in Feb. 2004. Continued market weakness comes just one month after the country's rate of unemployment unexpectedly dropped for the first time since August. Much of the previous decline was due to Australia's multiple fiscal stimulus packages which only delayed the inevitable. It appears now that the affects of these programs are weakening and that structural vulnerably in Australia's economy is now a present danger. Details show that while only a net 1,700 jobs were lost during the month, 26,200 full-time positions saw themselves eliminated. The gap was filled with part-time work, which ultimately rose by 24,500 spots.
Despite weakness in this market, the labor force participation rate rose for the first time in three months to match a high seen in July. Such a shift may be resulting from a dying incentive structure that offered cash handouts to those who were out of work. Indeed, the participation figure may only continue to rise so long as the federal government reduces or completely halts any additional stimulative programs.
