RBA 'Happy' With Rising Unemployment Amid Rate Decision

The Australian Reserve Bank's (RBA) latest labour force figures show that unemployment rose to 4.6 per cent in August, its highest level in nearly five years.

This may seem counterintuitive given that employment growth continues relatively solidly, with an additional 39,494 people employed in August.

However, the RBA's governor Michele Bullock stated that 'at the moment, we think [4.5 per cent unemployment] a bit tight' and that between 4.5 and 5 per cent will likely ease inflationary pressures.

The rise in unemployment was driven mostly by more men looking for work, with the unemployment rate increasing among men aged 20-24 to 7.9 per cent, and those aged 25-34 rising from 4.2 per cent to 4.5 per cent.