Unemployment Rate Hits Key Benchmark, Interest Rates Still on Track

Australia's unemployment rate has hit a significant benchmark, sparking mixed reactions from economists. The figure rose to 4.6% in August, the highest since November 2021 and in the post-COVID era.

This development is seen as crucial because Reserve Bank chief Michele Bullock had warned that unemployment may need to rise further to help ease inflation, specifying a range of 'between 4.5 per cent and 5 per cent'.

Economist Oscar Guth from Oxford Economics Australia believes the unexpected rise in the jobless rate will not dissuade the Reserve Bank from raising interest rates for a fourth time at its upcoming board meeting.