Australia's unemployment rate increases to 5.2 per cent

Australia's unemployment rate has increased to 5.2 per cent as 46,000 fewer people were employed in October.

New data released by the Australian Bureau of Statistics (ABS) showed that the unemployment rate lifted by 0.6 per cent from 4.6 per cent the month before.

Despite the unemployment rate rising, participation increased by 0.1 per cent to 64.7 per cent in October but is still 1.6 per cent below where it was in May.

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Bjorn Jarvis, head of labour statistics at the ABS, said the latest data included school holidays and some early changes to restrictions associated with the Delta lockdowns, particularly in New South Wales, ahead of larger changes from mid-October.

"As we've seen throughout the pandemic, the changes in the labour markets with lockdowns continued to have a large influence on the national figures," Mr Jarvis said.

"There was early recovery in New South Wales, with their participation rate increasing by 0.8 percentage points in October.

"This was underpinned by increases in both employment (22,000) and unemployment (35,000), with their labour force increasing by around 57,000 people. However, it was still 218,000 people lower than in May.

"In contrast, while Victoria's unemployment also increased, by 29,000 people, employment fell by a further 50,000, with their participation rate falling by 0.4 percentage points.

"The Victorian labour force was 113,000 people lower than in May."

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Mr Jarvis explained the rise in unemployment actually reveals many Australians are preparing themselves to re-enter the workforce following continual COVID-19 lockdowns.

"The increases in unemployment show that people were preparing to get back to work, and increasingly available and actively looking for work – particularly in New South Wales, Victoria and the Australian Capital Territory," Mr Jarvis said.

"This follows what we have seen towards the end of other major lockdowns, including the one in Victoria late last year.

"It may seem counterintuitive for unemployment to rise as conditions are about to improve.

"However, this shows how unusual lockdowns are, compared with other economic shocks, in how they limit being able to work and look for work."