Australia July unemployment rate hits 4.5% highest since 2021

Australia's unemployment rate rose to 4.5 percent in July, its highest level since late 2021, as employment fell and hours worked dropped sharply, according to data released by the Australian Bureau of Statistics on Thursday. The unexpected deterioration in the labor market eased pressure on the Reserve Bank of Australia to further raise interest rates and sent the Australian dollar lower.

Seasonally adjusted figures showed net employment declined by 15,800 people, to 14.807 million, against market expectations for an increase. The loss was concentrated in part-time positions, which shed 32,200 jobs, while full-time employment gained 16,300 positions. The unemployment rate ticked up from 4.4 percent in June, with the number of unemployed Australians climbing by 4,200 to 691,500. The participation rate slipped 0.2 percentage points to 66.9 percent, and total hours worked fell by 12 million hours, or 0.6 percent. Underemployment eased slightly to 6.4 percent.

The data painted a picture of a labor market that has begun to bend after years of remarkable resilience. The jobless rate now sits at levels last seen when the economy was still emerging from earlier shocks, though it...