Australia Unemployment Rate Hits Five-Year High Ahead of RBA Decision
Australia's labour market showed mixed signs in August, with employment growth exceeding expectations but the unemployment rate rising to a five-year high as more people entered the workforce.
The Australian Bureau of Statistics reported that employment rose by 39,500 in August, compared to a 21,500 increase expected by economists. The rise was driven by a 45,600 increase in part-time employment, while full-time employment fell by 6,300.
The unemployment rate climbed to 4.6% from 4.5%, the highest since November 2021, with more people moving into unemployment than in recent years. The participation rate also rose to 67.1% from 66.9%.
ANZ analysts described the data as mixed but said it represented a labour market gradually easing. They noted that the rise in unemployment was consistent with conditions becoming less tight, which should eventually help reduce inflationary pressures.
The Reserve Bank of Australia is set to make its policy decision on September 29, and while the data may not have altered ANZ's call for a 25 basis point rate hike, it remains to be seen how the central bank will respond.