The government is expected to address soaring youth unemployment at its Third Plenum next month
AFP

Australia's unemployment rate has remained steady at 4.2% in August, in line with expectations, data released by the Australian Bureau of Statistics (ABS) revealed Thursday.

According to the latest numbers from the ABS, the unemployment number decreased by 10,500 in seasonally adjusted terms, while the economy added 47,500 new jobs, ABC reported.

Part-time stints saw the most gains, with about 50,600 jobs being added last month, while full-time positions fell by 3,100.

ABC reported that since December 2023, 241,400 of the total 310,900 people, who were employed, received full-time positions.

Trend-wise, the jobless rate was steady at 4.1% for the third straight month, indicating ongoing stability in the labor market. The employment-to-population ratio increased to 64.3% to an almost all-time high, and the participation rate reached a record-high 67.1%.

"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," said Katie Lamb, ABS head of labor statistics.

With the belief that its 4.35% cash rate will limit inflation to 2-3%, while preserving employment gains, the RBA has maintained interest rates at the same level since November, Reuters reported.

The latest unemployment rate comes as experts say the US Federal Reserve's 0.5% interest rate cut may influence the Reserve Bank of Australia's (RBA) monetary policy.

However, Australia's tight labor market and record-high participation rate may prompt the RBA to maintain or make smaller adjustments to interest rates, prioritizing inflation control over aligning with the U.S. policy.

Speaking about Australia's unemployment rate, Indeed's Asia Pacific economist Callam Pickering said the country was producing more "quality high-paying jobs," adding that he believed the labor market will loosen more.

"We expect the unemployment rate to rise further over the remainder of the year, with strong employment gains not quite keeping pace with population growth," he said.