Australia’s unemployment rate held steady at 4.2 per cent in August despite a modest fall in the number of people working.

That unemployment rate was unchanged from the prior month, according to data released on Thursday by the Australian Bureau of Statistics.

But employment dropped slightly, by 5000 jobs, after an exceptionally strong performance through 2024. This month also saw a shift away from full-time work to part-time.

The Reserve Bank wants inflation to stay around 2.5 per cent — and expects the jobless rate will rise modestly — to be comfortable to further reduce interest rates.

“This confirms that the labour market remains tight,” BDO chief economist Anders Magnusson said.

“For now, the RBA is likely to maintain its current stance of a slightly restrictive cash rate, with t

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