Australia’s unemployment rate rises slightly from 3.4% to 3.5% as more people seek work

The unemployment rate will be closely watched by the Reserve Bank as retail sales remain strong and inflationary pressures continue. Photograph: Bianca de Marchi/AAP

Australia’s jobless rate rose last month to 3.5%, as more people sought work and the economy added jobs, even as rising interest rates squeezed finances for households and businesses.

Labour market data released by the Australian Bureau of Statistics on Thursday showed the economy added about 33,500 positions in August. The participation rate, which tracks the proportion of people looking for work, rose to 66.6%.