Australia jobless rate hits near 5-year high of 4.5pct in July
SYDNEY: Australian employment unexpectedly fell in July and the jobless rate hit its highest point since late 2021, data showed on Thursday, adding to signs of a cooling labour market and easing pressure for another interest rate hike.
Sydney - Australia's jobless rate unexpectedly rose to its highest point since late 2021 in July, hitting 4.5 per cent, according to data released on Thursday. The employment figures showed a drop in net employment by 15,800 from the previous month, while full-time jobs only increased by 16,300. The participation rate eased to 66.9 per cent from 67 per cent, and hours worked fell by 0.6 per cent, while underemployment remained at a two-year high of 6.4 per cent.
The Reserve Bank of Australia (RBA) now sees little chance of raising interest rates next month, but a decision by the end of the year is still uncertain, depending on inflation outcomes. Economists are closely watching the labour market, as softer wage growth and a decline in the participation rate add pressure on the RBA to hold policy rates steady at 4.35 per cent, following three rate increases this year.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
