Australian unemployment has risen to 4.6% in August, the highest level since the pandemic, despite economists' expectations of stability. This deteriorating labour market is pushing households to seek additional income to cope with soaring living costs and anticipated higher mortgage payments, as the Reserve Bank of Australia is widely expected to announce a fourth interest rate increase next Tuesday. The weak economic conditions signal that households are under significant financial pressure, with participation rates reaching near all-time peaks as families scramble for extra work.

The latest labour force data reveals a troubling employment composition, with 39,000 new jobs created in August offset by a 6,000-person decline in full-time work, indicating a shift towards part-time employment. More than 1 million Australians are now working multiple jobs—an all-time high of 6.9% of employed people—up approximately 1 percentage point since the inflationary pressures began in 2022. With inflation holding steady at 3.5% and the RBA's cash rate expected to reach 4.6% (its highest in nearly 15 years), economists warn that further interest rate rises remain likely, adding to the financial strain on households already facing elevated living expenses.