CANBERRA, Australia — Australian Treasurer Jim Chalmers said he expects the country's unemployment rate to rise from near record lows due to higher interest rates and slowing global economic growth.
Speaking to the Australian Broadcasting Corporation on Sunday, Chalmers said forecasts from the Reserve Bank of Australia and Treasury Department show unemployment ticking up as part of an expected moderation in inflation.
"As the Reserve Bank forecasts and the Treasury forecasts have inflation moderating over the coming months, they do have a tick up in unemployment as well," Chalmers said.
Australia's jobless rate unexpectedly edged lower to 3.6% in May, below analysts' estimates of 3.7%.
The RBA has said unemployment will likely need to reach around 4.5% — still below pre-pandemic levels — to bring the economy back into balance as it tries to curb inflation through higher interest rates.
Chalmers said unemployment is expected to rise "a bit as the economy slows as a consequence of higher interest rates and global economic uncertainty."
