Unemployment Rate Rises to Highest Level Since COVID Pandemic

Australia's unemployment rate has risen to its highest level since the COVID pandemic, according to data from the Australian Bureau of Statistics (ABS). The seasonally adjusted unemployment rate increased to 4.6 per cent in August, up from 4.5 per cent in July.

Despite the rise in unemployment rates, more jobs were added than anticipated, with part-time employment rising by 46,000 people and full-time employment falling by 6000 people. The growth in the size of the labour force resulted in an increase in the participation rate to 67.1 per cent.

The Australian Council of Trade Unions (ACTU) has used the data to call on the Reserve Bank of Australia to resist another hike in the official interest rate, citing concerns that a 5 per cent unemployment rate could mean as many as 55,000 more people out of work. ACTU secretary Melissa Donnelly said 'workers are not the cause of current inflation pressures, so adding further stress to their budgets is just wrong.'

Employment Minister Amanda Rishworth and Acting Treasurer Katy Gallagher have downplayed the rise in unemployment rates, stating that Australia's labour market remains resilient despite ongoing global economic uncertainty.