Australian Unemployment Rises to 4.6% in August Ahead of RBA Decision
| Pair | Now | Since publish |
|---|---|---|
| AUDUSD | — | — |
| AUDJPY | — | — |
| EURAUD | — | — |
- Australia’s unemployment rate rose to 4.6%, highest since 2021.
- August jobs added 39,500, beating forecasts significantly.
- More workers entered workforce, but full-time jobs fell.
- AUD muted; RBA focus stays on inflation.
Australia is scheduled to release its August employment report on Thursday at 01:30 GMT. Analysts generally anticipate the economy added around 20,000 new jobs, following a 15,800 decline in July, with the unemployment rate expected to hold steady at 4.5%. The participation rate is also projected to remain unchanged at 66.9%. This data arrives just days before the Reserve Bank of Australia’s (RBA) September 29 meeting, where a rate increase is widely anticipated. While a report largely in line with forecasts may not significantly alter expectations for the immediate RBA decision, a notable dip in the unemployment rate, potentially to 4.4%, could reinforce the case for further tightening beyond September, potentially bolstering the Australian dollar. Conversely, a significant rise in unemployment or a second consecutive decline in employment could challenge the outlook for additional rate hikes, potentially weighing on the AUD.
Australia’s August jobs report revealed the unemployment rate climbed to 4.6%, marking its highest level since 2021. This increase occurred despite a jump in overall hiring, as more individuals entered the workforce, leading to a higher participation rate. The report also indicated a fall in full-time roles. The Australian dollar experienced a muted reaction following the data release, with rates markets reportedly viewing the rise in unemployment as a supply-side development driven by increased participation, thus keeping the focus on inflation ahead of the Reserve Bank of Australia’s upcoming policy meeting.
New data revealed Australia added 39,500 jobs in August. The unemployment rate for the month rose to 4.6%, which was above the market forecast of 4.5%. This increase comes from a prior unemployment rate of 4.5%.