Australia unemployment rate hits five-year high of 4.7%

Australia’s unemployment rate reached a five-year high of 4.7% in September, according to data from the Australian Bureau of Statistics. The increase follows a steady rise from 4.1% in January, signaling a slowing labour market.

Employment fell by 39,300 in September, a decline driven largely by a drop in part-time positions, which fell by 73,600. While full-time employment saw an increase of 34,300, the overall reduction in employment and a decrease in people looking for work have contributed to a rising underemployment rate of 6.3%.

The weakening jobs market complicates the upcoming interest rate decision for the Reserve Bank of Australia (RBA). While some market expectations for a rate hike in November have decreased due to the rising unemployment, some analysts still anticipate a 25bp hike as the central bank balances inflation risks against easing labour conditions.