Australia / Unemployment Rate up at 5.8% near post-crisis high

Australia’s jobless rate rose to 5.8% in November, edging closer to a post-financial crisis high and posing a challenge for the country’s conservative government.

Unemployment surged to the top of the political agenda Wednesday as General Motors Co. GM -0.10% said it would cease all production in Australia from 2017, resulting in more than 2,900 job losses. It is following the path of other manufacturers who have exited the country as a strong local currency has given foreign competitors a cost advantage.

The Reserve Bank of Australia has been trying to spur weaker parts of the economy such as manufacturing and consumer sentiment by cutting interest rates eight times since late 2011. But so far the economy is stuck in low gear, with only tentative signs of a transition away from mining-dependent growth.

Thursday’s jobs data showed the participation rate remained at a seven-year low of 64.8% as disgruntled workers gave up looking for work.

“Eighteen months ago, the Australian market was hot. Now it’s slowed dramatically and there are unfortunately a lot of people sat at home waiting for opportunities,” said Shaun McCambridge, managing director of Stellar Recruitment. His firm is based in Queensland state, which has been badly hit by a downturn in the nation’s once-booming coal sector.

“People are having to become much more flexible about remuneration, rosters, and even relocation,” with many workers opting to head to countries like Papua New Guinea, or even as far away as Africa, to find work, said Mr. McCambridge.

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via Australia Jobless Rate Edges Toward Post-Crisis High – WSJ.com.