Australia's unemployment rate is the highest level in August, a year-high rate cut observed

[Sydney 19th Reuters]-The Australian Federal Statistical Office announced that the employment statistics for August increased 34,700 compared to the previous month, but the unemployment rate increased to 5.3% due to the increase in job seekers. It rose to a high level for the first time in a year.

As a result of the suggestion of a loose labor market, the view that the Reserve Bank of Australia (Central Bank) will make further easing is strengthened.

The growth in the number of employees has more than tripled market expectations (10,000 people). However, while the number of part-time workers has increased by 50,200, the number of full-time workers has decreased by 15,500. Indicators indicating underemployment also rose slightly.

After the announcement of statistics, the Australian dollar <AUD => interrupted US $ 0.68, the lowest price in two weeks. The observation that the central bank will cut the additional rate at the next board meeting on October 1 as early as possible. The Australian policy rate has fallen to a record low of 1% in June and July.

The central bank expects the labor market as a driver of wages and price increases, and is closely monitoring employment statistics. So far, it has shown that the unemployment rate should drop to around 4.5% in order to generate wage pressures.

However, the unemployment rate has gradually increased after falling to 4.9% in February. One factor contributing to the rise in the unemployment rate is the increase in job seekers. The labor participation rate in August was 66.2%, higher than 65.6% a year ago.

Economists and market participants expect the central bank to cut rates one more time this year, with some seeing the policy rate cut to 0.5% or below next year.