Australia's unemployment rate unexpectedly rose to 4.5 per cent in July, as 15,800 people lost their jobs, according to seasonally adjusted data released by the Australian Bureau of Statistics (ABS) on Thursday.
The rate increased by 0.1 percentage point from the previous month, defying market expectations of a steady 4.4 per cent. The participation rate also fell slightly, contributing to the rise in unemployment.
Economists had predicted a stable labour market, but the weaker-than-expected figures have prompted warnings to households about potential economic headwinds. The ABS noted that employment growth has slowed in recent months, with part-time work accounting for a larger share of net job gains.
The Reserve Bank of Australia (RBA) has been monitoring the labour market closely as it considers future interest rate decisions. The unexpected rise in unemployment may influence the RBA's policy stance, with some analysts suggesting a possible rate cut later this year.
Households are advised to brace for continued uncertainty, as the labour market shows signs of cooling amid broader economic pressures.
