Australia Unemployment Rate Hits Highest Level in Almost Five Years

The Australian unemployment rate rose to its highest level in almost five years in August. According to data released by the Australian Bureau of Statistics (ABS), the rate increased from 4.5 percent in July to 4.6 percent, surpassing the previous high in November 2021.

The number of employed Australians grew by 39,500 between July and August, but the number of unemployed people rose by 28,200 during the same period. The participation rate, which measures the proportion of the working-age population who are either employed or actively looking for work, increased from 66.9 percent in July to 67.1 percent in August.

The data was released ahead of the Reserve Bank of Australia (RBA)’s Monetary Policy Board meeting on Monday and Tuesday to set interest rates. RBA Governor Michele Bullock previously stated that an unemployment rate between 4.5 and 5.0 percent would take ‘enough heat out of the labor market’ to ease inflation pressure.