Leading economist tears apart Labor Minister Amanda Rishworth's claim unemployment rose in June due to 'global uncertainty'
Fresh data from the Australian Bureau of Statistics showed the unemployment rate rose 0.2 per cent to 4.3 per cent in June after it hovered near historic lows following the pandemic.
Employment and Workplace Relations Minister Amanda Rishworth told reporters the jump was attributable to international economic trends.
'What we have been focused on is making sure that we are navigating global uncertainty. There is significant global uncertainty across the world and, of course, that has an impact here in Australia,' Ms Rishworth said after the release of the data.
'But I would say that the uptick in unemployment is broadly in line with Treasury's forecasts that were outlined in March.'
Deutsche Bank's chief economist Phil O'Donaghue argued there was more to the rise in unemployment during an appearance on Business Now.
'I really think this is a domestic story – this slowdown in the labour market. What has been surprising is how long it's taken to manifest,' Mr O'Donaghue said.
'We know that non-market jobs have been very strong … the economists, myself included, have been waiting to see some slowdown.
'We were surprised by that strength and these numbers very much reflect the tightening in monetary policy domestically.
'My sense is this is very much a domestic story for us.'
Sky News' Business Editor Ross Greenwood similarly decried Ms Rishworth's explanation for the unemployment rise.
'That 'global uncertainty' stuff by the way is, of course, bunkum,' Greenwood said.
'Not right at all. Other things are at play here in Australia.'
The rise in unemployment has led many to question why the Reserve Bank of Australia held the cash rate in July despite money markets overwhelmingly factoring in a cut.
Sally Tindall, the data insights directors at comparison site Canstar, said the latest unemployment data was the 'next piece in the puzzle' for the RBA to cut rates during its upcoming August meeting.
'If inflation continues to trend down, as expected, the RBA will have very little reason to delay its next cash rate cut, especially when so many Australians are still struggling under the weight of their mortgage,' Ms Tindall said in a statement.
'The RBA's mandate is to keep prices stable, but also Australians in jobs, and today's Labour Force figures are an important reminder of this. Inflation is coming down, but the strength of the jobs market is starting to slip.
'If the data continues in this direction, the case for a rate cut will be impossible to ignore.'
She said if lenders pass on the 0.25 per cent cut the RBA is poised to deliver in August, a household with a $600,000 loan could see their minimum monthly repayments reduce by $90.
A household with a $1m mortgage would see their monthly repayments fall by $150 while a house with a $750,000 loan would pocket $113 per month.
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