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ASX 200 LIVE: Australia employment rate increases in August, jobless rate rises to 4.6 per cent
Oil prices lower as Iran open to diplomatic end to war
Jobs numbers ‘final nail in the coffin’ for RBA rate rise
The Australian sharemarket is lower after unemployment rose, in line with losses in New York as oil surged back above $US100 a barrel and bond yields spiked higher.
The S&P/ASX 200 Index fell 73 points, or 0.3 per cent, to 8692.70 at 2.15pm on Thursday. Two of the 11 sectors were in the green, led by energy.
New data published on Thursday showed the unemployment rate in Australia rose to 4.6 per cent in August despite the economy adding 39,500 jobs.
The S&P 500 slipped 0.8 per cent, and the Nasdaq dropped 1.1 per cent overnight, retreating from recent highs as the yield on US 10-year bonds leapt to 5.11 per cent.
Unemployment rises to 4.6%, but a September interest rate hike still looks likely
Unemployment rose to 4.6% in August, new Australian Bureau of Statistics figures show. That’s the highest it’s been since November 2021.
Since the start of this year, Australia’s unemployment rate has increased by 0.5 percentage points, up from 4.1% last December.
However, that upward trend appears unlikely to dissuade the Reserve Bank board from lifting interest rates next week, given the central bank’s recent stern warnings about fighting inflation.
On Tuesday, Reserve Bank Governor Michele Bullock warned that unemployment may need to rise further to help rein in inflation:
I think [an unemployment rate] between 4.5% and 5% will probably take enough heat out of the labour market that it’ll ease pressure on inflation.
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Surprise unemployment jump ahead of RBA’s looming rates call
The unemployment rate has unexpectedly risen after 6000 people lost their full-time jobs in August, but it’s unlikely to spare Australians from another rate hike next week.
New data released on Thursday morning by the Australian Bureau of Statistics showed the jobless rate rose to 4.6 per cent for last month, up from 4.5 per cent in July.
The jump in unemployment will factor into the RBA’s next interest rate decision, to be handed down on Tuesday. Peter Rae
It is the highest unemployment level recorded in Australia since the end of the pandemic.
Economists had expected the figure to remain steady at 4.5 per cent.
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