Australian Unemployment Rate Hits Nearly Five-Year High

Australia's unemployment rate has risen to its highest level in almost five years, reaching 4.6 per cent in August.

The unexpected increase is attributed to a growth in the labour force, which pushed up participation to a near-record high of 67.1 per cent, according to the Australian Bureau of Statistics (ABS).

While joblessness remains relatively low, the rise in Australians entering the labour market suggests households are feeling the pinch due to rising prices driven by the Middle East conflict.

RBA governor Michele Bullock has indicated that an unemployment rate between 4.5 per cent and 5 per cent would be needed to ease pressure on inflation, further cementing market expectations of another interest rate hike next week.