Australian Unemployment Unexpectedly Rises in July, Dampening RBA Rate Hike Expectations
| Pair | Now | Since publish |
|---|---|---|
| AUDUSD | — | — |
- Australia’s jobless rate rose to 4.5% in July.
- Full-time jobs rose, part-time roles fell in July.
- 3-month average job growth firm at 34k; rate 4.4%.
- Mixed Australia jobs data tempers RBA rate hike bets.
Australia’s unemployment rate unexpectedly rose in July, diverging from market expectations for a steady rate. Analysts had largely anticipated the jobless rate to remain stable at 4.4%, with job creation projected between 11.4K and 15K for the month. This outcome aligns with the Reserve Bank of Australia’s (RBA) view of a gradually loosening labor market. Following the data release, market participants adjusted their outlook, paring bets on further RBA interest rate increases.
New details from Australia’s July jobs report reveal that while the unemployment rate climbed to 4.5%, its highest level since late 2021, the increase was entirely driven by a decline in part-time roles, with full-time employment actually rising. Furthermore, the three-month average pace of employment growth remained firm at 34k, and the three-month average jobless rate was unchanged at 4.4%, suggesting a more nuanced picture than the headline figure alone.