Australian unemployment rises to 4.6% in August despite 39,500 job gains

September 24, 2026 at 06:33 AM2 min

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Australia's unemployment rate climbed to 4.6% in August, exceeding economists' expectations of 4.5%, data from the Australian Bureau of Statistics showed Thursday. The economy added 39,500 jobs, more than the predicted 20,000, while the participation rate rose to 67.1% from 66.9%. The report is the final major economic release before the Reserve Bank of Australia meets on Sept. 28-29 to weigh resuming interest-rate increases.

Key Facts

Australia's unemployment rate rose to 4.6% in August from 4.5% in July, surpassing economists' expectations of an unchanged rate.
The economy added 39,500 jobs in August, nearly double the predicted 20,000 increase.
The participation rate climbed to 67.1% from 66.9% in August.
The Reserve Bank of Australia is expected to deliver its fourth rate hike this year on Tuesday, taking rates to 4.6%, the highest since late 2011.
RBA Governor Michele Bullock said earlier this week that unemployment edging up toward 5% would loosen the labor market and help alleviate inflationary pressures.

Labor Market Data

The Australian Bureau of Statistics released August labor force data on Thursday showing the unemployment rate rose to 4.6%, above the 4.5% economists had forecast. Employment increased by 39,500 positions, exceeding the median estimate of 20,000. The participation rate climbed to 67.1% from 66.9% in July. The rise in unemployment despite strong job gains reflects a growing labor force as more people entered the market.

Reserve Bank Policy Outlook

The jobs report is the final major economic release before the Reserve Bank of Australia's policy meeting on Sept. 28-29. The RBA is expected to raise its cash rate by 25 basis points to 4.6% on Tuesday, the fourth increase this year and the highest level since late 2011. Policymakers lifted rates three times between February and May before holding at 4.35% at the past two meetings. RBA Governor Michele Bullock said earlier this week that unemployment edging up toward 5% would loosen the labor market and help alleviate inflationary pressures. The RBA's most recent forecasts, published in August, project the jobless rate will peak at 4.8% by mid-2028.