Unemployment Rises to 4.5%, Reserve Bank Rate Hikes May Be Over

Unemployment in Australia rose to 4.5% in July, matching levels seen in April this year and September last year. This marks a significant increase from June's 4.4%, with 15,800 people losing their jobs. The Australian Bureau of Statistics reported that part-time employment fell by 32,200 while full-time positions increased by 16,300.

The Reserve Bank may see this as a sign that its rate hikes are working to loosen the labour market and ease inflation pressures. Ebury economist Anthony Malouf noted that the data 'may offer the RBA some confidence' in its decisions. The Australian dollar fell 0.2% to 71.1 US cents following the release of the statistics.

Treasurer Jim Chalmers attributed the rise in unemployment to global challenges, saying it was 'unsurprising' given the situation. He added that Australia's low unemployment rate is a testament to the country's resilience in the face of uncertainty.