Australian unemployment rate rises again as ABS releases September jobs data

It is harder for Australians to find a job, but it still could be too soon for mortgage holders to celebrate.

Fresh Australian Bureau of Statistics figures show the jobless rate came in at 4.7 per cent in September up from 4.6 in August – with ecomonists saying this will give the Reserve Bank reason to pause rate hikes this year.

This remains its highest point since the Covid pandemic. The number of Australians who found work decreased by 39,000.

Weak jobs figures could help mortgage holders, as the RBA is trying to slow the economy to bring inflation under control.

The Reserve Bank runs a dual mandate of keeping both inflation within a target of 2 to 3 per cent while maintaining full employment.

But RBA governor Michele Bullock has said unemployment would need to rise to help bring down inflation which is currently at 4 per cent.

Wednesday’s jobs figures add to the case to hold interest rates when the RBA monetary board next meets on Melbourne Cup day.

BDO chief economist Anders Magnusson said Thursday’s jobs data weakens the case for further interest rate pain in November.

“The result suggests that the labour market is moving further in the direction the Reserve Bank has been seeking,” he said.

“Higher interest rates and slower economic activity may be easing the competition for workers that contributed to domestic inflation pressures in recent years.”

Oxford Economics economist Oscar Guth said a slowing jobs market could slow down the need for any further rate hikes this year.

“The rise in the unemployment rate to 4.7 per cent gives the RBA more room to be patient and assess incoming inflation data before raising rates again,” he said.

“This is consistent with our view that a further rate hike will come in the first quarter of next year.”

Prior to Thursday’s figures, Westpac and NAB economists expected Australian employment to rise 20,000 in September with unemployment steady.