Australia Jobless Rate Hits 4.5% as RBA Faces Fresh Pressure to Pause Hikes
Updated
Updated · realestate.com.au · Aug 20
Australia Jobless Rate Hits 4.5% as RBA Faces Fresh Pressure to Pause Hikes
3 articles · Updated · realestate.com.au · Aug 20
Summary
Australia’s unemployment rate rose to 4.5% in July from 4.4% in June, with 691,500 people out of work, adding to pressure on the Reserve Bank to keep rates on hold.
The increase fits a broader slowdown: household spending has weakened, GDP growth and business investment have slowed, and Australians are working fewer hours than at the start of 2026.
Economists said the softer labour market strengthens the case for a wait-and-see stance after the RBA held rates last week, though most said it does not yet put rate cuts on the table.
Next week’s inflation data is now the key test for policy, with price growth still above the RBA’s 2%-3% target band even as it has started to ease.
Mortgage stress remains acute in the wider economy, with Finder estimating 891,000 borrowers are struggling with repayments and 27% saying they are scraping by or near default.
With rate cuts delayed until 2027, how many hidden mortgage defaults will finally surface and fracture Australia's fragile housing market?
As underemployment surges and working hours vanish, is the Reserve Bank's cure for inflation secretly pushing the workforce toward a devastating recession?