Australia's unemployment falls, but distorted by lockdowns

[SYDNEY] Australia's unemployment rate unexpectedly dropped in July to a 12-year low, but the drop was largely due to people falling out of the labour force as coronavirus lockdowns limited their ability to look for work.

Data from the Australian Bureau of Statistics (ABS) out on Thursday showed the jobless rate dived to 4.6 per cent in July, the lowest since early 2009, when analysts had expected a tick up to 5.0 per cent. Employment rose 2,200 in July, again confounding forecasts for a fall of 46,200.

The ABS emphasised the data should not be viewed as a sign of strength in the labour market noting the number of unemployed fell sharply mainly due to the restrictions of lockdowns.

REUTERS