AU: Unemployment rate reaches post-COVID era high of 4.6pc in August

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1. 3h ago

   Australia's unemployment rate hits 4.6% in August

   Australia's unemployment rate rose to 4.6% in August, marking a high for the post-COVID era. The increase exceeded forecasts and came as a surprise to markets. While the jobless rate climbed, the employment rate also increased during the same period. Australian shares trimmed their declines following the release of the data. This labor market shift occurs as citizens seek second jobs to manage the rising cost of living and increased mortgage repayments.

   Why it matters

   The jump in unemployment arrives just before a scheduled interest rate decision by the Reserve Bank of Australia. Labor market stability typically influences whether the central bank raises, lowers, or holds rates to manage inflation.

   What is confirmed

   • The Australian unemployment rate reached 4.6% in August.
   • The August jobless rate exceeded forecasts.
   • Australia's employment rate increased in August.

   Still unconfirmed

   • Australians are scrambling for second jobs to handle cost of living and mortgage repayments.
   • Australian shares trimmed declines after the jobless rate data was released.

   What to watch next

   • The Reserve Bank of Australia interest rate decision
   • Future labor force statistics to determine if the 4.6% rate is a trend
   Sources used for this update (5)

   1. Forex Factory — AU: Unemployment rate reaches post-COVID era high of 4.6pc in August
   2. Reuters — Australian shares trim declines after jobless rate tops forecasts
   3. The Guardian — Australians ‘scrambling’ for second jobs to deal with rising mortgage repayments and cost of living
   4. AFR — ASX 200 LIVE: Australia employment rate increases in August, jobless rate rises to 4.6 per cent
   5. Nine.com.au — Surprise unemployment jump ahead of RBA’s looming rates call
   confidence 90%