Surprise jobless hike may trigger interest rate relief
The unemployment rate bucked market expectations, rising from 4.1 per cent to 4.3 per cent in June, according to the Australian Bureau of Statistics.
Though the result was unexpected, ex-Reserve Bank economist Luke Hartigan said it met the central bank's year-end unemployment forecast.
"This just adds information to say that some modest reduction in interest rates is warranted," the University of Sydney economics lecturer told AAP.
After its July meeting, the central bank disappointed mortgage-holders and shocked market economists by opting to hold the cash rate at 3.85 per cent in a split decision.
The latest jobs data has been read by some as an early sign of labour market softening.
Combined with moderating inflation, the unemployment figures meant an interest rate cut was "virtually locked in" when the central bank meets in August, CreditorWatch's chief economist Ivan Colhoun said.
But other economists believe there is still room to move, with VanEck investments head Russel Chesler pointing to the July 30 release of quarterly inflation figures as a vital data point in the Reserve Bank's next rate decision.
"The market is still pricing in two more rate cuts by the end of the year, but we consider it premature to be making this call before there is any data to support this," he said.
While the recent unemployment increase has put the rate at its highest level since November 2021, Dr Hartigan maintained other metrics showed the market was still relatively solid.
"This is the first uptick in a little while, so it's a little bit concerning," he said.
"But in the context of where the unemployment rate is now versus where it's been in the past, it is still very low."
Economists would likely need a few more months of continued rise to be sure of a weakening in the labour market.
Treasurer Jim Chalmers called the unemployment uptick an "inevitable consequence" of global economic uncertainty and the ongoing impact of higher interest rates.
"The Australian economy is not immune from global uncertainty but we are well‑placed and well‑prepared to face the challenges ahead," he said.
"The ongoing resilience in our labour market over the past three years remains one of our best defences."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Perth Now
10 minutes ago
- Perth Now
‘Trusted name': Defunct airline's return
More than 20 years after closing its doors, Ansett is back – this time, as an AI-powered travel agency. Ansett Airlines – later Ansett Australia – served as the country's second-largest since 1936 before it was placed into voluntary administration and ceased operations in 2002, resulting in a loss of 16,000 jobs. Before its closure, the airline was once a mainstay of Australian culture as one of the major sponsors of the AFL and the major sponsor for the 2000 Sydney Olympics. Ansett Australia ceased operations in 2002. Credit: Supplied Last month, Melbourne entrepreneur Constatine Frantzeskos announced the airline's return as an AI-powered travel agency after 'the famous Ansett trademark had lapsed'. 'Ansett is back – reborn as Australia's first truly AI-run travel agency,' he wrote on LinkedIn. 'I registered the trademark, created a fleet of AI agents, and – thanks to a tech integration with Travlr – have now turned Ansett into a one-founder online travel agency.' The Ansett Travel website is powered by AI and designed to offer a 'personalised' experience. 'We use a combination of large language models, recommendation systems, and predictive pricing engines,' the website read. 'Our AI helps personalise your journey, surface better deals faster, and automate the back-end processes that traditional OTAs still handle manually.' According to the company's website, the travel agency operates with 500 airlines and three million hotels and aims to '(revive) a trusted name' and '(give) it a new identity'. Speaking to The Sydney Morning Herald, Mr Frantzeskos said Ansett Travel was 'building the personal travel agent of the future'. The Ansett brand is making a comeback – this time as an AI-powered travel agency. Credit: Supplied According to the website, the company is not 'trading on nostalgia'. 'The Ansett name still holds meaning – especially for Australians who remember a time when travel felt innovative, considered, personal, and premium,' the website read. 'We're not trading on nostalgia – we're reviving a trusted name and giving it a new identity: intelligent, intuitive, and value-driven.'
Perth Now
40 minutes ago
- Perth Now
UN urges Australia to lead global renewable energy race
The United Nations is urging Australia to set ambitious climate and renewable energy targets in its next net-zero update to secure future jobs and a rich vein of clean exports for the country. Falling short of expectations would come at a significant cost, the organisation warns, as natural disasters caused by climate change could "cripple" local food production and undermine Australians' living standards. United Nations climate change executive secretary Simon Stiell issued the warnings at an event in Sydney on Monday before he is due to meet with Climate Change Minister Chris Bowen. The call comes two months before the federal government is due to release 2035 climate goals, but also as former deputy prime minister Barnaby Joyce introduced a private member's bill to parliament to repeal Australia's 2050 net-zero target. The race to develop, sell and use clean energy products had already begun across the world, Mr Stiell told the Smart Energy Council event, with major renewable investments in countries including China and India. Australia's "defining moment" for the market could arrive in September with its 2035 climate plan, he said, which, could lay the foundation for future jobs and businesses, and send a clear message to investors worldwide. "(It's one shot) to strengthen Australia's economic security and regional influence, building an on-ramp to the Asian clean-tech boom," he said. "(It's one shot) to anchor future industries - green hydrogen, clean metals, critical minerals - in policies that give investors confidence, give communities certainty, create good jobs paying good wages, and a rising national tide that lifts living standards for all." His call comes less than a week after an International Renewable Energy Agency study found 91 per cent of renewable energy projects were more cost-effective than those using fossil fuel. Solar projects saved 41 per cent on average, while onshore wind projects cut costs by 53 per cent, the research found. Australia's existing renewable energy targets were effective, Mr Stiell said, but more ambitious goals could further reduce the costs of energy production and help Australians avoid costly climate risks. Allowing climate change to continue could "cripple Australia's food production", he said, as well as contributing to a loss in gross domestic product and lower living standards. "Climate disasters are already costing Australian home-owners $4 billion a year and that figure is only going one way," Mr Stiell said. "Australia has a strong economy and among the highest living standards in the world – if you want to keep them, doubling down on clean energy is an economic no-brainer." Under the Paris climate agreement, the Australian government must submit its 2035 climate targets by September this year. The Climate Change Authority, which will advise the government, is considering an emissions-reduction target between 65 and 75 per cent by 2035. Current Australian climate targets include a 43 per cent reduction in greenhouse gases and 82 per cent of electricity from renewable sources by 2030. The federal opposition is yet to release a climate policy.
The Advertiser
40 minutes ago
- The Advertiser
UN urges Australia to lead global renewable energy race
The United Nations is urging Australia to set ambitious climate and renewable energy targets in its next net-zero update to secure future jobs and a rich vein of clean exports for the country. Falling short of expectations would come at a significant cost, the organisation warns, as natural disasters caused by climate change could "cripple" local food production and undermine Australians' living standards. United Nations climate change executive secretary Simon Stiell issued the warnings at an event in Sydney on Monday before he is due to meet with Climate Change Minister Chris Bowen. The call comes two months before the federal government is due to release 2035 climate goals, but also as former deputy prime minister Barnaby Joyce introduced a private member's bill to parliament to repeal Australia's 2050 net-zero target. The race to develop, sell and use clean energy products had already begun across the world, Mr Stiell told the Smart Energy Council event, with major renewable investments in countries including China and India. Australia's "defining moment" for the market could arrive in September with its 2035 climate plan, he said, which, could lay the foundation for future jobs and businesses, and send a clear message to investors worldwide. "(It's one shot) to strengthen Australia's economic security and regional influence, building an on-ramp to the Asian clean-tech boom," he said. "(It's one shot) to anchor future industries - green hydrogen, clean metals, critical minerals - in policies that give investors confidence, give communities certainty, create good jobs paying good wages, and a rising national tide that lifts living standards for all." His call comes less than a week after an International Renewable Energy Agency study found 91 per cent of renewable energy projects were more cost-effective than those using fossil fuel. Solar projects saved 41 per cent on average, while onshore wind projects cut costs by 53 per cent, the research found. Australia's existing renewable energy targets were effective, Mr Stiell said, but more ambitious goals could further reduce the costs of energy production and help Australians avoid costly climate risks. "Climate disasters are already costing Australian home-owners $4 billion a year and that figure is only going one way," Mr Stiell said. "Australia has a strong economy and among the highest living standards in the world – if you want to keep them, doubling down on clean energy is an economic no-brainer." Under the Paris climate agreement, the Australian government must submit its 2035 climate targets by September this year. The Climate Change Authority, which will advise the government, is considering an emissions-reduction target between 65 and 75 per cent by 2035. Current Australian climate targets include a 43 per cent reduction in greenhouse gases and 82 per cent of electricity from renewable sources by 2030. The federal opposition is yet to release a climate policy. The United Nations is urging Australia to set ambitious climate and renewable energy targets in its next net-zero update to secure future jobs and a rich vein of clean exports for the country. Falling short of expectations would come at a significant cost, the organisation warns, as natural disasters caused by climate change could "cripple" local food production and undermine Australians' living standards. United Nations climate change executive secretary Simon Stiell issued the warnings at an event in Sydney on Monday before he is due to meet with Climate Change Minister Chris Bowen. The call comes two months before the federal government is due to release 2035 climate goals, but also as former deputy prime minister Barnaby Joyce introduced a private member's bill to parliament to repeal Australia's 2050 net-zero target. The race to develop, sell and use clean energy products had already begun across the world, Mr Stiell told the Smart Energy Council event, with major renewable investments in countries including China and India. Australia's "defining moment" for the market could arrive in September with its 2035 climate plan, he said, which, could lay the foundation for future jobs and businesses, and send a clear message to investors worldwide. "(It's one shot) to strengthen Australia's economic security and regional influence, building an on-ramp to the Asian clean-tech boom," he said. "(It's one shot) to anchor future industries - green hydrogen, clean metals, critical minerals - in policies that give investors confidence, give communities certainty, create good jobs paying good wages, and a rising national tide that lifts living standards for all." His call comes less than a week after an International Renewable Energy Agency study found 91 per cent of renewable energy projects were more cost-effective than those using fossil fuel. Solar projects saved 41 per cent on average, while onshore wind projects cut costs by 53 per cent, the research found. Australia's existing renewable energy targets were effective, Mr Stiell said, but more ambitious goals could further reduce the costs of energy production and help Australians avoid costly climate risks. "Climate disasters are already costing Australian home-owners $4 billion a year and that figure is only going one way," Mr Stiell said. "Australia has a strong economy and among the highest living standards in the world – if you want to keep them, doubling down on clean energy is an economic no-brainer." Under the Paris climate agreement, the Australian government must submit its 2035 climate targets by September this year. The Climate Change Authority, which will advise the government, is considering an emissions-reduction target between 65 and 75 per cent by 2035. Current Australian climate targets include a 43 per cent reduction in greenhouse gases and 82 per cent of electricity from renewable sources by 2030. The federal opposition is yet to release a climate policy. The United Nations is urging Australia to set ambitious climate and renewable energy targets in its next net-zero update to secure future jobs and a rich vein of clean exports for the country. Falling short of expectations would come at a significant cost, the organisation warns, as natural disasters caused by climate change could "cripple" local food production and undermine Australians' living standards. United Nations climate change executive secretary Simon Stiell issued the warnings at an event in Sydney on Monday before he is due to meet with Climate Change Minister Chris Bowen. The call comes two months before the federal government is due to release 2035 climate goals, but also as former deputy prime minister Barnaby Joyce introduced a private member's bill to parliament to repeal Australia's 2050 net-zero target. The race to develop, sell and use clean energy products had already begun across the world, Mr Stiell told the Smart Energy Council event, with major renewable investments in countries including China and India. Australia's "defining moment" for the market could arrive in September with its 2035 climate plan, he said, which, could lay the foundation for future jobs and businesses, and send a clear message to investors worldwide. "(It's one shot) to strengthen Australia's economic security and regional influence, building an on-ramp to the Asian clean-tech boom," he said. "(It's one shot) to anchor future industries - green hydrogen, clean metals, critical minerals - in policies that give investors confidence, give communities certainty, create good jobs paying good wages, and a rising national tide that lifts living standards for all." His call comes less than a week after an International Renewable Energy Agency study found 91 per cent of renewable energy projects were more cost-effective than those using fossil fuel. Solar projects saved 41 per cent on average, while onshore wind projects cut costs by 53 per cent, the research found. Australia's existing renewable energy targets were effective, Mr Stiell said, but more ambitious goals could further reduce the costs of energy production and help Australians avoid costly climate risks. "Climate disasters are already costing Australian home-owners $4 billion a year and that figure is only going one way," Mr Stiell said. "Australia has a strong economy and among the highest living standards in the world – if you want to keep them, doubling down on clean energy is an economic no-brainer." Under the Paris climate agreement, the Australian government must submit its 2035 climate targets by September this year. The Climate Change Authority, which will advise the government, is considering an emissions-reduction target between 65 and 75 per cent by 2035. Current Australian climate targets include a 43 per cent reduction in greenhouse gases and 82 per cent of electricity from renewable sources by 2030. The federal opposition is yet to release a climate policy. The United Nations is urging Australia to set ambitious climate and renewable energy targets in its next net-zero update to secure future jobs and a rich vein of clean exports for the country. Falling short of expectations would come at a significant cost, the organisation warns, as natural disasters caused by climate change could "cripple" local food production and undermine Australians' living standards. United Nations climate change executive secretary Simon Stiell issued the warnings at an event in Sydney on Monday before he is due to meet with Climate Change Minister Chris Bowen. The call comes two months before the federal government is due to release 2035 climate goals, but also as former deputy prime minister Barnaby Joyce introduced a private member's bill to parliament to repeal Australia's 2050 net-zero target. The race to develop, sell and use clean energy products had already begun across the world, Mr Stiell told the Smart Energy Council event, with major renewable investments in countries including China and India. Australia's "defining moment" for the market could arrive in September with its 2035 climate plan, he said, which, could lay the foundation for future jobs and businesses, and send a clear message to investors worldwide. "(It's one shot) to strengthen Australia's economic security and regional influence, building an on-ramp to the Asian clean-tech boom," he said. "(It's one shot) to anchor future industries - green hydrogen, clean metals, critical minerals - in policies that give investors confidence, give communities certainty, create good jobs paying good wages, and a rising national tide that lifts living standards for all." His call comes less than a week after an International Renewable Energy Agency study found 91 per cent of renewable energy projects were more cost-effective than those using fossil fuel. Solar projects saved 41 per cent on average, while onshore wind projects cut costs by 53 per cent, the research found. Australia's existing renewable energy targets were effective, Mr Stiell said, but more ambitious goals could further reduce the costs of energy production and help Australians avoid costly climate risks. "Climate disasters are already costing Australian home-owners $4 billion a year and that figure is only going one way," Mr Stiell said. "Australia has a strong economy and among the highest living standards in the world – if you want to keep them, doubling down on clean energy is an economic no-brainer." Under the Paris climate agreement, the Australian government must submit its 2035 climate targets by September this year. The Climate Change Authority, which will advise the government, is considering an emissions-reduction target between 65 and 75 per cent by 2035. Current Australian climate targets include a 43 per cent reduction in greenhouse gases and 82 per cent of electricity from renewable sources by 2030. The federal opposition is yet to release a climate policy.
