Another worrying sign for economy
Australia's unemployment rate surprised economists by climbing to 5.3% in August — its highest level in a year. It was pushed up by a rise in the participation rate — a measure of the number of people employed or actively looking for work. This could encourage more rate cuts and calls for the government to drop its obsession with budget surpluses to stimulate the economy. Ironically, a smaller-than-expected budget deficit was also announced on Tuesday, setting the scene for a surplus this financial year.