Australian unemployment climbs to 4.7% in September, highest since 2021
The unemployment rate in Australia rose to 4.7% in September, the highest level since October 2021, as the labor market weakens despite four interest-rate hikes this year.
Australia's unemployment rate rose to 4.7% in September, the highest figure since October 2021 when major cities were still under COVID lockdown. The Australian Bureau of Statistics said the economy shed 39,300 jobs, a far larger loss than the market expectation of a stable 4.6% rate and the creation of 19,600 positions. The surge follows four interest-rate increases by the Reserve Bank of Australia this year, which lifted the cash rate to a 15-year high of 4.6%.
Inflation stayed at 4% in August, above the RBA’s 2-3% target, indicating the central bank’s dual mandate is under pressure. Victoria recorded the highest state unemployment at 5.1%, a worrying sign for the State Labor Party as it seeks a fourth consecutive term. RBA Governor Michele Bullock dismissed the notion of stagflation, arguing that one outlet unemployment and inflation levels are not historically high. The International Monetary Fund and the RBA had projected the 4.7% rate to appear only by 2027, highlighting the unexpected speed of the labor market's slowdown.
Why it matters
Higher unemployment signals a slowing economy and challenges the Reserve Bank's effort to curb inflation.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage frames the unemployment rise as pressure on the Reserve Bank to rethink policy, while right-leaning coverage links the surge to multiple rate hikes, high inflation and political concerns; Centrist coverage simply reports the headline figure and its post-COVID context without assigning cause.
LEFT
Frames the rise as putting pressure on the Reserve Bank of Australia to reconsider monetary policy
CENTER
Frames the story as a straightforward report that unemployment stayed at 4.7%, the highest post-COVID level, noting a dip in participation
RIGHT
Frames the increase as a concerning surge tied to four interest-rate hikes, inflation above target, and political implications for the State Labor Party
The left emphasises
- pressure on the RBA
- highest level in almost five years
- largest rise since October 2021
The right emphasises
- rise to 4.7% highest since 2021
- followed four interest-rate increases
- inflation stayed at 4% above the RBA’s target
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