Jobless Rate Hits Five-Year High as Aussie Dollar Slips

Australia's jobless rate has hit a five-year high of 4.6% in August, surpassing market forecasts and sparking anticipation for an imminent interest rate hike by the Reserve Bank of Australia (RBA).

The RBA had raised interest rates three times this year to tame inflation, but core inflation remains above its target range of 2-3%, at 3.6%. The Australian dollar slipped another 0.3% to $0.7018, a seven-week low.

Despite the unexpected rise in jobless rate, employment saw a solid rebound, with net employment rising 39,500 in August from July. However, this increase was driven entirely by part-time roles.

Oscar Guth, economist for Oxford Economics Australia, 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.'