Shock jump in unemployment rate
Fresh figures released by the ABS shows the unemployment rate rose to 4.3 per cent last month, beating expectations of 4.1 per cent.
Employment as a whole rose by 2000 people this month, following a fall of 1000 in May, and is up 2 per cent year on year.
The rise in unemployment was determined as 33,600 workers became unemployed in the month of June.
This was against expectations of 20,000 jobs to be added in the month and the unemployment rate to hold.
The underemployment rate also increased to 6 per cent, as 40,200 part time roles were created and 38,200 full time roles were lost from the job market.
The employment-to-population ratio remained at 64.2 per cent, and the participation rate, being people who are actively working, rose to 67.1 per cent.
Hours worked fell 0.9 per cent in June, following a rise of 1.4 per cent in May.
ABS head of labour statistics Sean Crick said: 'This month we saw a decrease in full time hours worked, down 1.3 per cent, associated with a 0.4 per cent fall in full time employees.'
Prior to Thursday's official announcement, experts had tipped the unemployment rate to remain at 4.1 per cent, although they did predict a tightening of the jobs market.
The Reserve Bank of Australia will be watching the jobless rate ahead of its next meeting, having the dual mandate of employment and controlling inflation.
'I think the focus for the RBA will be ensuring the labour market remains healthy going forward,' NAB's head of Australian economics Gareth Spence said.
'The timing of cuts is not super important.
'It's more about where do they end up.'
In a move that shocked markets and disappointed homeowners, the RBA kept the official cash rate at 3.85 per cent during its July 8 meeting.
Most economists had already pencilled in a rate cut as well as another cut in August.
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