Australia’s Tight Jobs Market Bolsters RBA’s Cautious Stance (1)

Australian unemployment held steady last month even as the economy shed jobs with fewer people looking for work, signaling the labor market remains tight and reinforcing the Reserve Bank’s cautious approach to policy easing.

The jobless rate was unchanged at 4.2% in August, matching economists’ forecasts, data from the Australian Bureau of Statistics showed Thursday. Employment fell by 5,400 driven entirely by full-time roles. Part-time work jumped 35,500.

The Australian dollar and yields on policy-sensitive three-year government bonds both fell. Traders expect the RBA’s rate-setting board to leave interest rates on hold at 3.6% this month ...