Australian Unemployment Hits Post-Pandemic High of 4.5%

Australia's unemployment rate has reached its highest level since the pandemic began, according to recent data. The trend unemployment rate rose to 4.5% in July, surpassing the June figure of 4.4%. This significant increase is attributed to a decline in part-time employment, with 15,800 fewer people employed compared to June.

The number of unemployed individuals also saw an uptick, rising by 4,200 in July. Economists have linked this rise in unemployment to the Reserve Bank of Australia's (RBA) expectations of a gradual economic slowdown over the next year.

David Bassanese, chief economist at BetaShares, noted that these statistics support keeping interest rates unchanged at the RBA's meeting in late September. The data, combined with slowing housing price growth and lower-than-expected inflation for the June quarter, further reduce the likelihood of another interest rate hike.