24/09/2026
AUSTRALIA’S UNEMPLOYMENT RATE HITS 4.6% AS INTEREST RATE DECISION LOOMS
SYDNEY — Australia’s unemployment rate has climbed to 4.6 per cent, its highest level in the post-COVID period, adding another complication for the Reserve Bank ahead of its next interest rate decision.
Fresh Australian Bureau of Statistics data released Thursday shows the jobless rate increased from 4.5 per cent in July to 4.6 per cent in August.
Despite the rise in unemployment, the economy added around 39,500 jobs during the month. However, the increase came from part-time employment, which jumped by approximately 45,800, while full-time employment fell by about 6,300.
The participation rate also rose from 66.9 per cent to 67.1 per cent, meaning more Australians entered the workforce or began actively looking for work. The number of unemployed people increased by about 28,200.
Attention now turns to the Reserve Bank of Australia, with financial markets and major banks widely expecting another interest-rate increase at next week’s meeting as policymakers continue trying to contain inflation.
The RBA currently has the cash rate at 4.35 per cent after three increases earlier this year. Its August outlook said inflation remained too high and warned unemployment was expected to rise gradually as economic activity slowed.
Economists quoted by major outlets said Thursday’s weaker unemployment result may relieve some labour-market pressure, although expectations for another rate rise remain strong. Reuters reported markets were pricing a roughly 95 per cent probability of a rise to 4.6 per cent next week.