Australia's economy shed a larger-than-forecast 27,100 jobs in August, tempering expectations of a rise in interest rates in October.
The unemployment rate was unchanged at a seasonally adjusted 5.8% in August from July, the Australian Bureau of Statistics said. Economists on average had expected an unemployment rate of 5.9%, with the number of employed down 15,000.
The number of people in full-time work fell 30,800, the ABS said. A fall in workforce participation in August prevented a rise in unemployment.The jobs data will strengthen the government's resolve not to withdraw economic stimulus. The figures highlight the need to continue to support economic activity by rolling out the government's fiscal stimulus measures in full, said Deputy Prime Minister Julia Gillard.
Rolling back economic stimulus now "would pull the rug out from under the Australian economy," she told reporters in Canberra, adding that unemployment is likely to continue rising.