Australia’s Unemployment Rate Reaches Post-COVID High of 4.6% in August

Australia’s unemployment rate rose to 4.6% in August, reaching its highest level in the post-COVID period as more people entered the labour market looking for work.

The figure increased from 4.5% in July, according to data released by the Australian Bureau of Statistics (ABS) on Thursday. Reuters reported that the August unemployment rate was the highest in nearly five years.

Despite the increase in unemployment, the number of people employed also rose during the month. Employment increased by 39,500 people, while the number of unemployed people increased by about 28,200. The rise in employment was driven largely by an increase in part-time work, while full-time employment declined.

The participation rate also increased, meaning more Australians were either working or actively looking for jobs. This helped push the unemployment rate higher even as total employment continued to grow.

The latest figures provide a mixed picture of Australia’s labour market. More people are finding work, but the number of people seeking employment is growing faster than employment itself.

The result comes as the Reserve Bank of Australia (RBA) considers its next interest-rate decision. RBA Governor Michele Bullock recently said an unemployment rate somewhere between 4.5% and 5% could be sufficient to reduce pressure in the labour market and help ease inflation.

Financial markets were already expecting another interest-rate increase from the RBA, according to Reuters. The August employment figures were therefore being closely watched for signs of whether the Australian economy is beginning to slow.

The ABS has cautioned that short-term movements in monthly employment data can be volatile, and that trend estimates can provide a better indication of underlying labour-market conditions.

With unemployment now at 4.6%, Australia’s labour market is showing clearer signs of cooling compared with the exceptionally tight conditions seen in the years following the pandemic.

Sources
Reuters — Australia’s unemployment rate hits five-year high
ABC News Australia — Unemployment rate reaches post-COVID era high
Australian Bureau of Statistics — Labour Force, Australia
Australian Bureau of Statistics — July 2026 labour-force data