Australia’s economy robust despite unemployment uptick

It’s a complex picture facing the RBA and the Federal Government; a weakening labour market at the same time as a supply shock is pushing up inflation, writes KPMG Senior Economist Terry Rawnsley.

Australia's labour market weakened in February, with the Australian Bureau of Statistics (ABS) recording a higher-than-expected lift in joblessness. The unemployment rate increased to 4.3 percent on a seasonally adjusted basis, according to the ABS, up from 4.1 percent the prior month and above consensus estimates of 4.1 percent. That lift was driven by a surge in the number of people looking for work, rather than people losing their jobs. The number of new jobs created outpaced expectatio...

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Authors: Terry Rawnsley

Published Date: 20 March 2026