Australia jobless rate hits near five-year high of 4.5% in July
Part-time job losses and weaker participation added to signs of a cooling labour market, while markets trimmed odds of another Reserve Bank rate hike.
- On Aug 20, the Australian Bureau reported Australia's unemployment rate rose to 4.5% in July as 15,800 net jobs were lost, marking the highest jobless rate since late 2021.
- The Reserve Bank held policy rates steady at 4.35 per cent last week, judging the labour market has eased enough to help bring inflation down without further rate hikes.
- While 16,300 full-time jobs were gained, the net decline was driven by a large fall in part-time employment, and the labour market participation rate eased to 66.9% from 67%.
- The report sent the Australian dollar 0.2 per cent weaker to 71.1 US cents, as Ben Udy, lead economist for Oxford Economics Australia, said softer data keeps pressure off the RBA to hike.
- Markets now price in little chance of a rate hike next month, while the RBA forecasts unemployment will reach 4.8% by mid-2028 as the economy continues its labour market transition.
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25 Articles
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Australia’s unemployment rate rises to 4.5%
Australia jobless rate hits near 5-year high of 4.5% in July
Australian employment unexpectedly fell in July and the jobless rate hit its highest point since late 2021, data showed on Thursday, adding to signs of a cooling labour market and easing pressure for another interest rate hike.
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