Australian Unemployment Hits Five-Year High Amid Solid Employment Growth

Australia's jobless rate unexpectedly rose to a five-year high in August, despite solid employment growth.

The Australian Bureau of Statistics reported that unemployment increased to 4.6 percent, exceeding market forecasts for a steady 4.5 percent.

The rise was driven by an influx of people into the labour force, with the participation rate climbing to 67.1 percent, up 0.2 percentage point from July.

Despite the increase in unemployment, markets still anticipate that the Reserve Bank of Australia will raise interest rates for a fourth time next Tuesday to 4.6 percent.

Economist Oscar Guth 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.