Australia’s unemployment rate rises to 4.6% in August

  • Australia’s unemployment rate rose to 4.6% in August from 4.5% in July.
  • Employment increased by 39,500 and the participation rate rose to 67.1%.
  • The RBA meets Sept. 28-29 after holding the cash rate at 4.35% twice.

Australia’s seasonally adjusted unemployment rate rose to 4.6% in August from 4.5% in July as participation increased, even though employment grew by 39,500, almost double economists’ forecast for a 20,000 gain. The participation rate rose to 67.1% from 66.9%, indicating more people entered or sought work. Full-time employment fell by 6,300 and hours worked increased 0.7%. The figures are the final major economic release before the Reserve Bank of Australia’s Sept. 28-29 meeting, where policymakers are expected to consider a fourth interest-rate increase this year, taking the cash rate to 4.6% from 4.35%. Governor Michele Bullock has said unemployment moving toward 5% would ease labor-market pressures and help curb inflation. The RBA forecasts unemployment will peak at 4.8% by mid-2028, while inflation has remained above the midpoint of its 2% to 3% target range for almost five years.

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