Australia’s jobless rate hits five-year high in August as more seek work
The jobless rate rose to 4.6 per cent, the highest level since late 2021.
Australia's unemployment rate reached a five-year high of 4.6 percent in August, according to data released on September 24, despite a rise in employment. The Australian Bureau of Statistics (ABS) reported that net employment increased by 39,500 in August, driven primarily by part-time roles. This rise in employment did not keep pace with the influx of new job seekers, resulting in a higher unemployment rate.
The participation rate increased to 67.1 percent, up 0.2 percentage points. Overall, the labour market showed signs of loosening, as employment growth lagged behind the increase in the number of people entering the workforce. The Australian dollar weakened to a seven-week low of US$0.7026, a decline of 0.2 percent. Despite the higher unemployment rate, the RBA is expected to raise interest rates for the fourth time in 2026, with market bets suggesting a 95 percent chance of a rate increase to 4.6 percent.
The central bank maintains the possibility of a rate rise, with Governor Michele Bullock stating that an unemployment rate between 4.5 percent and 5 percent could help curb inflation. However, core inflation remains high at 3.6 percent, above the RBA's target range of 2 percent to 3 percent.
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