Rising Unemployment Rate Triggers Interest Rate Hike Expectations

Australia's unemployment rate rose to 4.6 per cent in August, reaching its highest level since November 2021.

The Australian Bureau of Statistics reported that an extra 39,500 people were employed in August, while 28,200 more were unemployed.

The participation rate increased by 0.2 percentage points to a near-record high of 67.1 per cent.

RBA governor Michele Bullock has hinted at another interest rate hike, stating that the labour market is still 'a bit tight' and an unemployment rate between 4.5 per cent and 5 per cent would be needed to ease pressure on inflation.