AUD little changed: Australia jobless rate hits 4.6%, highest since 2021, participation outpaces jobs beat

The muted reaction in AUD/USD reflects a report that offers something for both sides: headline hiring was strong, but a higher jobless rate and a fall in full-time roles temper the hawkish read. Rates markets are likely to treat the unemployment rise as a supply-side story, driven by participation, which keeps the focus on inflation and next week's RBA decision. The ASX 200's partial recovery suggests equity investors took some comfort that the labour market is not deteriorating outright. The ABS caution around seasonal adjustment may lead traders to lean more on trend data, limiting the report's staying power as a market driver. --- Australia's labour market added jobs at twice the expected pace and still saw unemployment rise, because even more people came looking for work, a quirk that does little to shift the RBA's focus on inflation. Summary: Employment rose 39,500 in August against expectations of 20,000, after a 15,800 fall in July Full-time employment fell 6,300, while part-time jobs rose 45,800 The unemployment rate rose to 4.6% from 4.5%, above expectations and the highest since late 2021 The participation rate climbed to 67.1% from 66.9%, above the 66.9% forecast Hours worked rose 0.7%, underemployment eased to 6.2%, and employment has averaged 34,000 a month over three months The ABS flagged a survey methodology change and advised caution with seasonally adjusted August data, recommending trend figures Employment increased by 39,500 in August, roughly double the 20,000 gain markets had forecast, after a decline of 15,800 in July. The detail was less robust, with full-time jobs down 6,300 and part-time positions accounting for all of the gain, up 45,800. Over the past three months, employment has risen by an average of 34,000 a month. The unemployment rate climbed to 4.6% from 4.5%, where economists had expected it to hold. The increase reflected a jump in the participation rate to 67.1% from 66.9%, as a larger share of Australians entered the labour forc