Australian economy adds 65,000 jobs in August, raising prospect of further rate hikes

New ABS figures showing the jobless rate remained steady in August point to a likelihood the Reserve Bank will further raise interest rates. Photograph: Bianca de Marchi/AAP

Employers hired almost 65,000 more workers in August, many more than expected, improving the prospects that the economy will avoid a hard landing but also raising the possibility the Reserve Bank may hike interest rates again.

The unemployment rate last month was 3.7%, the Australian Bureau of Statistics said on Thursday. Economists had forecast the economy would add 25,000 jobs in August, which would have left the jobless rate at July’s reported level of 3.7%.