Australian Unemployment Rises to 4.6% in August, Ahead of RBA Rate Decision

Australia's unemployment rate unexpectedly rose to 4.6% in August, up from 4.5% in July, despite the economy adding 39,500 jobs, the Australian Bureau of Statistics reported Thursday. Economists had forecast the jobless rate to hold steady and jobs growth of 20,000. The participation rate climbed to 67.1% from 66.9%. The data, the last major release before the Reserve Bank of Australia's Sept. 28-29 meeting, suggests a labor market the RBA considers "a bit tight" is softening, potentially easing inflation pressures. RBA Governor Michele Bullock said this week that unemployment edging toward 5% would loosen the labor market. The RBA is expected Tuesday to raise rates by 25 basis points to 4.6%, the highest since late 2011, its fourth hike this year.