RBA 'Happy' with Rising Unemployment as Inflation Fears Loom

The latest unemployment figures show that the rate has risen to 4.6 per cent in August, the highest level in nearly five years.

This rise is largely due to more men looking for work, with unemployment rates increasing for men aged 20-24, 25-34, and 45-55.

On the other hand, Reserve Bank governor Michele Bullock believes that an unemployment rate between 4.5 and 5 per cent will ease pressure on inflation, which is a key concern for the central bank.

The RBA has indicated that it wants to see higher unemployment as a way to combat inflationary pressures, but critics argue that this approach could lead to recession.