Surprise unemployment jump ahead of RBA’s looming rates call
FinanceNine.com.au

Surprise unemployment jump ahead of RBA’s looming rates call

Australia's unemployment rate rose to 4.6% in August, the highest since the pandemic, but economists still expect the RBA to hike rates next week.

The unemployment rate has unexpectedly risen after 6000 Australians lost their full-time jobs in August. New data released on Thursday morning by the Australian Bureau of Statistics showed the jobless rate rose to 4.6 per cent for last month, up from 4.5 per cent in July.

The Long Sip
What happened

Australia's jobless rate climbed to 4.6 per cent in August, its highest level since the end of the pandemic, surprising economists who expected it to hold steady.

The detail

Six thousand full-time jobs were lost, partly offset by 46,000 new part-time roles, while the participation rate rose to 67.1 per cent as more people entered the workforce.

What it means

Despite the rise, markets still widely expect the RBA to lift interest rates on September 29, meaning mortgage holders are unlikely to get relief just yet.

For you

Markets widely expect a 25-basis-point rate rise on September 29, so if you have a variable mortgage, budget for another repayment increase.

Full story at Nine.com.au

What readers are saying

Sim
The part that stands out is the 39000 rise in employment being overtaken by 28000 more people becoming unemployed plus the jump in those moving from outside the labour force straight into looking for work. That pushes the participation rate to 67.1 percent and explains why the jobless rate still climbed to 4.6 percent even with more part time roles added.
PolishAusBeata
Will the RBA treat the shift from not in the labour force to unemployed as a stronger signal than the modest 0.1 point unemployment rise?

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