Australia Jobless Rate Hits Five-Year High at 4.6%, RBA Rate Hike Still Expected

Australia's unemployment rate rose to 4.6% in August, its highest level since late 2021, even as net employment topped forecasts, according to Australian Bureau of Statistics data released Sept. 24. The participation rate climbed 0.2 percentage points to 67.1% as more people entered the labor force. Net employment rose 39,500 from July, beating forecasts of a 20,000 gain, though full-time jobs fell 6,300. Hours worked increased 0.7%. Markets priced a 95% chance the Reserve Bank of Australia will raise its policy rate to 4.6% at next week's meeting, the fourth hike this year. The Australian dollar slipped 0.2% to $0.7026, a seven-week low. RBA Governor Michele Bullock said unemployment in a 4.5%-5.0% range could help restrain inflation, which remains at 3.6% core, above the 2%-3% target. Markets now see the cash rate peaking at 5.1% as oil trades above $100 a barrel.