Australia Unemployment Rate Hits Five-Year High Amid Market Expectations for RBA Hike

Australia's jobless rate unexpectedly rose to a five-year high in August, despite strong employment growth, according to data from the Australian Bureau of Statistics.

The unemployment rate climbed to 4.6%, above forecasts for a steady 4.5% and the highest level since late 2021, as the participation rate increased to 67.1%, up 0.2 percentage point.

Oscar Guth, economist for Oxford Economics Australia, stated that 'employment growth failed to keep pace with the influx of people into the labour force in August, easing some of the tightness in the labour market.'

The Reserve Bank of Australia (RBA) has raised interest rates three times this year to 4.35% to combat inflation, but core inflation remains at 3.6%, above the RBA's target range of 2% to 3%.