There were huge falls in jobless rates in many parts of the country. The Northern Territory's jobless rate fell from 7.5 per cent to 4.2 per cent,in Western Australia it dropped from 8.3 per cent to 7 per cent,while in Queensland it went from 8.8 per cent to 7.5 per cent.
In NSW,the nation's biggest jobs market,the jobless rate dropped from 7.2 per cent to 6.7 per cent.
Analysts and the government had been expecting a spike in unemployment in Victoria due to its lockdown. But even there,where 42,400 jobs disappeared,the unemployment rate only moved up to 7.1 per cent from 6.8 per cent.
The fall in unemployment was driven almost entirely by an unusual surge in the number of sole traders coming back into the jobs market.
In original terms,total employment lifted by 44,200 in August. Sole traders,who do not employ any staff,increased by more than 50,000. Many of these sole traders work in the gig economy.
The figures suggest these people were barely working. While total employment grew by 1 per cent,hours worked only increased by 0.1 per cent.
The effective unemployment rate,taking into account people counted as employed even though they worked zero hours,was closer to 9.5 per cent. Another 785,000 people are working fewer hours than they want.
EY chief economist Jo Masters said the increase was largely driven by part-time employment and people in the gig economy.
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She said while the overall economy would need more support via the budget,there were positive signs.
"It looks increasingly likely that economic activity will avoid a third consecutive quarter of economic contraction and the unemployment rate will peak below 10 per cent,"she said.
AMP Capital economist Diana Mousina said that,while the labour market was improving,53 per cent of jobs lost due to the coronavirus outbreak had been regained.
There was also a second round of impacts yet to hit the market,including bankruptcies and business closures.
"Subdued employment growth and a rising labour force participation rate,as more people go back into the workforce,means that the unemployment rate will keep rising,"she said.
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