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.

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.

Based on these latest numbers for August, a 5% unemployment rate would equate to about 55,000 extra Australians out of work. That would be in addition to the 28,000 who became unemployed between July and August.

Job trends since December

So far in 2026, employment has grown by about 1.2%. This has been just enough to keep the proportion of the population who are........

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