Amid a deteriorating outlook for the global economy due to rising inflationary pressures, the latest labour market data released has shown that Australia’s unemployment rate has edged higher
The Labour force figures which is released by the Australian Bureau of Statistics, has shown unemployment rose to 3.5 per cent in August from 3.4 per cent in July.
According to the figures released, there were around 33,000 people found employment, while the number of unemployed people rose by 14,000 in August.
The participation rate which reflects number of people actively looking for job, had inched 0.2 of a percentage point higher to 66.6 per cent.
Whilst some economists may believe the labour figures and recent inflation data would justify another 50 basis point hike in October.
However according to CommSec chief economist Craig James said the RBA would need to be weary of not aggressively hiking rates which could slump consumer sentiment. He said security is of paramount importance and not being too aggressive in lifting rate.
