Rising Unemployment Rate Fails to Dent Inflation Expectations

Australia's unemployment rate has risen to its highest level since the COVID-19 pandemic. The Australian Bureau of Statistics reported that in August, the jobless rate increased to 4.6%, up from 4.5% in July.

The number of people unemployed rose by 28,000, with full-time employment falling by 6,000 but part-time employment increasing by 46,000. Despite an overall gain of 39,000 jobs, the participation rate surged to 67.1%, outpacing new job creation.

RBA governor Michele Bullock said that a jobless rate between 4.5% and 5% could help reduce inflationary pressures by taking 'enough heat' out of the labour market.