Australian unemployment hits five-year high as nearly 40,000 lose jobs
Australia’s unemployment rate has climbed to 4.7 per cent, reaching its highest level since October 2021 for the second consecutive month as the labour market shows signs of weakening.
New figures released by the Australian Bureau of Statistics (ABS) on Thursday show the September unemployment rate exceeded economists’ expectations of 4.6 per cent. The ABS also revised August’s rate from 4.6 to 4.7 per cent.
According to ABS head of labour statistics Sean Crick, Australia recorded 39,000 fewer employed people in September, while the number of unemployed people increased by 9,000.
The employment-to-population ratio fell by 0.3 percentage points to 63.6 per cent. The participation rate, which measures the share of people working or actively seeking work, dropped by 0.2 percentage points to 66.8 per cent.
The latest figures could ease pressure on the Reserve Bank of Australia (RBA) to raise interest rates again before the end of the year.
Oscar Guth of Oxford Economics Australia said the higher unemployment rate could give the RBA more time to assess inflation before making its next decision on interest rates. He expects another rate increase in the first quarter of 2027.
RBA Governor Michele Bullock has previously indicated that unemployment may need to rise towards 5 per cent to help bring inflation under control, potentially creating room for interest rates to stabilise and eventually fall.
However, economists warn the jobs market could weaken further. Guth expects unemployment to continue rising through 2027, potentially exceeding 4.8 per cent late in the year as the effects of higher oil prices and tighter monetary policy weigh on the economy.
The latest figures highlight the growing challenge facing Australian workers, while also adding to uncertainty over the outlook for interest rates and household finances.
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Source : 9 News
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