Australia’s unemployment rate rose to 4.6% in August, its highest level since November 2021, despite employment increasing. The result suggests the labour market is weakening, while also reflecting a sharp rise in the number of people seeking work.

Employment grew by 39,500, but unemployment increased by 28,200 as the participation rate climbed 0.2 percentage points to 67.1%, near a record high. The figures exceeded forecasts, and stronger participation obscured the underlying signal; markets consequently saw an increased likelihood of an interest-rate rise by the Reserve Bank of Australia.