Treasurer Josh Frydenberg concedes Australia’s labour market is still challenging despite a surprise fall in unemployment.
The jobless rate unexpectedly fell to 6.8 per cent in August, bucking widespread predictions of a slight rise.
“The labour market is still very challenging,” Mr Frydenberg told Sky News on Friday.
“There is a lot of uncertainty out there in the economy – not just here in Australia but globally – and that’s a reflection of the nature of the virus.”
Roughly 111,000 people gained employment in August, the third month of exceptionally strong results.
Over half the massive jobs losses in April and May have been recovered.
However such strength masked a 42,400 drop in employment numbers in Victoria, where restrictions remain.
Mr Frydenberg, a Victorian MP, said businesses in the state were still hard hit by lockdowns.
“I’m hoping and the prime minister is hoping those restrictions can be