Australia's Job Market Growth in August

Investing.com – Australia’s job market grew much more than expected in August, even as the broader economy cooled due to high interest rates.

According to data from the Australian Bureau of Statistics released on Thursday, the total number of employed people rose by 47,500, significantly above the expected 26,400, though it did ease from July's 58,200 increase.

The participation rate, which indicates the percentage of the population within the employment sector, remained steady at a record high of 67.1%. The unemployment rate stayed unchanged at 4.2%.

This reading marks the fifth consecutive month of significant growth in Australia’s labor force, as local businesses continue to face challenges in filling a high number of vacancies, particularly for skilled laborers.

Kate Lamb, ABS head of labour statistics, stated, "The high employment-to-population ratio and participation rate shows that there are still large numbers of people entering the labor force and finding work, as employers continue to look to fill a more than usual number of job vacancies."

The strength of the labor market has been a key driver of consumer inflation in the country and provides the Reserve Bank of Australia with the opportunity to maintain high interest rates.