Australia's Jobless Rate Hits Near Five-Year High as Employment Unexpectedly Falls
Australia's jobless rate reached its highest point in nearly five years at 4.5% in July, according to data released on August 20.
The unexpected drop in employment was a significant departure from June's revised increase of 80,300 jobs and the forecasted gain of 15,000 jobs for July.
Markets reacted by sending the Australian dollar down 0.2% to 71 US cents (90 Singapore cents), with little chance of a rate hike from the Reserve Bank of Australia in September but still pricing in a move by the end of 2026 as uncertain, depending on inflation outcomes.
Ben Udy, lead economist for Oxford Economics Australia, noted that 'Today's data are a touch weaker than the bank had pencilled in and, together with yesterday's softer wage growth, keep the pressure off the RBA to hike anytime soon.'