Australia's unemployment rate to hold at 6.2%

In August, the participation rate fell 0.1ppts to 65.0% and the unemployment rate eased back to 6.2% (6.22% unrounded). So, while the resilience in the participation rate suggests changes to government policy are a factor, the small pull-back in August suggests that some statistical volatility also played a part. As such, it is likely that a large part of the recent jump in participation is permanent (notwithstanding any further changes to government policy). 

"We are looking for the participation rate to hold at 65% which will result in a 11.9k rise in the labour force. This is behind our forecast for the unemployment rate to hold at 6.2%", says Westpac Research.