Signalberita.com — Australia’s unemployment rate rose to 4.5 percent in July 2026, up from 4.4 percent in the previous month. The figure was also higher than the market forecast of 4.4 percent.
Data released by the Australian Bureau of Statistics (ABS) on Thursday (August 20, 2026) showed that Australia’s labor market weakened during July.
The number of employed people fell by 15,800 in July, reversing the increase of 76,300 jobs recorded in June. The July result was also significantly below market expectations, which had forecast an increase of around 15,000 jobs.
>The labor force participation rate also edged down from 67 percent in June to 66.9 percent in July.
By employment type, the number of full-time workers increased by 16,300. However, this increase was unable to offset the decline of 32,200 part-time workers.
ABS Head of Labour Statistics Sean Crick said most of the decline in employment occurred among male workers.
The number of employed men fell by around 11,000, including a decline of 10,000 part-time workers and 1,000 full-time workers.
Meanwhile, the number of employed women decreased by around 5,000. Female part-time employment fell by 22,000, while full-time employment increased by 17,000.
ABS data also showed that total hours worked in Australia fell by around 12 million hours in July. Full-time workers accounted for a decline of approximately 7 million hours, while part-time workers recorded a decrease of around 5 million hours.
Australian Dollar Under Pressure
The employment data immediately put pressure on the Australian dollar (AUD). The AUD/USD currency pair fell by around 0.26 percent to approximately 0.7106 when the report was published.
>The weaker labor market has attracted attention because employment data is one of the indicators considered in determining the monetary policy direction of the Reserve Bank of Australia (RBA).
However, the RBA continues to place significant emphasis on inflation developments. In its previous policy decision, the Australian central bank maintained its interest rate at 4.35 percent.
The RBA considers inflation to remain too high, while labor market conditions have begun to show signs of modest easing.
This means that weaker employment data may not immediately prompt the RBA to change its policy. Markets will also monitor inflation, commodity prices, oil prices, and global economic conditions.
AUD/USD Outlook
Weaker-than-expected employment data could limit gains in the Australian dollar in the short term. However, the direction of AUD/USD will also depend heavily on movements in the US dollar and global market risk sentiment.
Technically, AUD/USD had been trading around the 0.7100 level. The 0.7060 area is one of the key levels being watched by market participants.
If the AUD/USD pair manages to remain above this area, bullish sentiment could continue. Conversely, a decline below 0.7060 could open the way for further weakness toward around 0.7030.
The July employment data is now one of the key indicators for assessing Australia’s economic conditions and the potential direction of RBA policy going forward.(*)
