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Australia employment drops 15.8K as unemployment rate rises to 4.5%

The report shows cooling across participation and hours worked, adding to evidence that tighter financial conditions are weighing on jobs.

Reported · Written up by our desk · Central Banks

Australia’s labor market weakened in July, with employment falling by 15.8K after a revised 80.2K gain in June, missing expectations for an 11.4K increase, according to Action Forex.

The unemployment rate rose from 4.4% to 4.5%, above the 4.4% forecast. Broader labor indicators also softened, with the participation rate slipping from 67.0% to 66.9% and the employment-to-population ratio falling from 64.0% to 63.9%.

Hours worked declined by 0.6% month over month, down 12 million hours from 2.010 billion to 1.998 billion, reinforcing the slowdown signal. Employment losses were concentrated among males, down 11K, while female employment fell 5K, with female full-time jobs rising 17K but part-time roles down 22K.

For the Reserve Bank of Australia, Action Forex said the data provides fresh evidence that tighter financial conditions are slowing employment after Deputy Governor Andrew Hauser pointed to a slowdown in consumption and employment growth, though it also said the report does not remove tightening risk given still elevated inflation and energy costs.

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