Australia’s jobless rate rose to 4.3% in June, the highest since November 2021, as employment increased only slightly, showing signs of weakness in the labour market.
Net employment rose by just 2,000, falling short of expectations for a 20,000 gain, according to data from the Australian Bureau of Statistics released on Thursday.
The weak report pushed the Australian dollar down 0.7% to $0.6480, a three-week low. Government bond yields also dropped, with markets increasing bets that the Reserve Bank of Australia will cut interest rates in August.
Full-time jobs fell by 38,200 in June, and hours worked dropped by 0.9%. The participation rate edged up to 67.1%.
In May, employment was revised to show a decline of 1,100. The unemployment rate had held steady in recent months, but the June jump brought it to the RBA’s year-end forecast earlier than expected.
The labour market had held up despite weak overall economic growth. The RBA kept rates unchanged at 3.85% earlier this month, after two cuts this year, as it waits for third quarter inflation data before making further moves.
Private sector data has shown job ads rising again, and job vacancies rose 2.9% in the May quarter. But Thursday’s data suggested growing pressure in the job market.
