Australia’s unemployment rate rises to 4% but uncertainty now lingers over expected RBA cut

The labour market was surprisingly strong for most of 2024, enabling many households to weather a period of high inflation that has triggered steep rises in living costs.
Photograph: Daniel Munoz/Reuters

The unemployment rate increased in December, while job creation also rose strongly, in a sign of a resilient labour market that is creating uncertainty over an expected interest rate cut next month.

Australia’s jobless rate lifted to 4% in December, the Australian Bureau of Statistics data revealed on Thursday. At the same time, there were 56,300 additional people employed, as more people sought work.