Unemployment has lifted to 5.3%, in a surprise jump, with the economy losing 9,700 jobs in August.
According to the Australian Bureau of Statistics, the economy lost 12,600 full-time jobs in August to 8.035 million.
Employment was tipped by economists to have risen by 12,000 last month.
The ABS also revised its July unemployment rate to 5.2% from 5.1%.
The news prompted a fall in the Aussie dollar, down half a cent just before midday to US105.9c.
Westpac senior economist Justin Smirk says the figures were a “surprisingly very weak read on the Australian jobs market”, especially given this was census month and the ABS employed a temporary workforce of about 30,000.
“The mix of full-time vs part-time was also weak with full-time employment now falling in four of the last five months. In addition male employment continued to decline falling 10.8k,” Smirk says.
“Westpac’s forecast for an unemployment rate of 5.5% by mid 2012 now looks very conservative.”
The Australian sharemarket opened slightly higher this morning but fell immediately after jobs figures were released, despite a massive 2.47% lead from US shares.
The benchmark S&P/ASX200 index was up 0.7 points or 0.02% to 4184.1 at 12.00 AEST, while the Australian dollar also fell to $US1.05c.
AMP shares rose 0.96% to $4.20, while Commonwealth Bank shares fell 0.32% to $47.34. NAB rose 0.61% to $23.08, as Westpac fell 0.05% to $20.06.
In the United States, shares rose after hopes of a European debt plan came to light following a German court ruling. The Dow Jones Industrial Average rose by 275 points or 2.47% top 11,414.
In company news, Foster’s has welcomed a ruling by the Takeovers Panel that there was “no reasonable prospect that it would make a declaration of unacceptable circumstances” in relation to its communication with the market.
The global brewer, SABMiller, had complained to the panel over its takeover target’s 2011 full-year results presentation.
After the ruling dismissing the complaint, Foster’s said it stood by the key presentation, and “takes its obligation to provide accurate and timely disclosure to the market seriously.”
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