Australia added 39,500 jobs in August, above forecasts, but unemployment rose to 4.6%, its highest since late 2021, as more people entered the labour force looking for work. Market bets on a Reserve Bank rate rise next week were little changed.
Employment had fallen by 15,800 in July, while full-time jobs declined by 6,300 in August despite the overall gain. The participation rate rose 0.2 percentage point to 67.1%, and hours worked increased 0.7%.
Markets put a 95% chance on a fourth Reserve Bank of Australia rate increase next week, taking the cash rate from 4.35% to 4.6%. Core inflation is 3.6%, above the bank’s 2%-3% target. Governor Michele Bullock said unemployment between 4.5% and 5.0% could help restrain inflation and warned that inflation risks were materialising amid the Middle East conflict and data-centre investment boom.
