Australians are increasingly struggling to keep up with rising living costs and are taking on more work to manage their finances, according to economists. Recent data from the Australian Bureau of Statistics revealed that the unemployment rate climbed to 4.6% in August, the highest level since the pandemic began. This increase was unexpected, as analysts had predicted the rate would remain stable. Despite this, the Reserve Bank of Australia (RBA) is expected to raise interest rates again, potentially pushing the cash rate to 4.6%—the highest in nearly 15 years. The RBA has been concerned about inflation, which currently stands at 3.5%, and has not shown signs of slowing down as hoped. With the ongoing conflict between the US, Israel, and Iran potentially increasing fuel costs, economists believe there is a strong chance of another rate hike, possibly on Melbourne Cup day, a major event in Australia. The latest employment data showed that the number of employed Australians increased by 39,000 in August. However, this growth was driven by a rise in part-time jobs, while full-time employment decreased by 6,000. The overall rise in unemployment was due to more people entering the job market, according to analysts. KPMG’s chief economist, Brendan Rynne, noted that the economy is showing signs of weakness, with households struggling under the pressure of higher inflation and anticipated increases in mortgage rates. He added that the participation rate—meaning more people are looking for work—has reached near record levels, indicating that people are seeking additional income to manage their daily expenses and future mortgage payments. Earlier this month, data from the Australian Bureau of Statistics showed that over 1 million Australians are now working more than one job, a record high. This trend has increased by about 1 percentage point since the start of the inflationary period in 2022. Westpac economist Ryan Wells explained that while a weak economy might usually reduce job searching, the pressure from rising living costs and interest rates is actually encouraging more people to seek employment.