Australia’s labour market showed its first clear sign of strain in almost four years. Bureau of Statistics data for June recorded a gain of just 2,000 positions, far short of the 20,000 economists expected. The unemployment rate jumped to 4.3% from 4.1%, the highest since November 2021, as a 38,200 slide in full-time jobs was only partially offset by a 40,200 rise in part-time roles. The participation rate edged up to 67.1%. The weaker-than-expected figures prompted investors to bring forward bets on monetary easing. The Australian dollar fell about 0.7% to US$0.6480 and three-year government bond yields dropped around 10 basis points to 3.39%, with futures indicating an 85% probability that the Reserve Bank of Australia will cut its 3.85% cash rate at its 5 August meeting. Across the UK, the Office for National Statistics reported that the unemployment rate rose to 4.7% in the three months to May, the highest level since mid-2021 and above the 4.6% consensus. Payrolled employment decreased by 41,000 in June, while annual wage growth slowed to 5.0% from 5.3% and the number of vacancies extended a three-year decline to 727,000. The cooling in Britain’s labour market, coming days after a stronger-than-expected inflation reading, has reinforced expectations that the Bank of England will deliver its first rate cut of the cycle on 7 August, trimming Bank Rate from 4.25%. Analysts cite a combination of elevated borrowing costs and April’s rise in employer National Insurance contributions as key drags on hiring. The simultaneous uptick in joblessness in two G-20 economies highlights how tight monetary policy and higher business costs are beginning to ease labour-market pressures, strengthening the case for policy makers in both Canberra and London to begin loosening financial conditions as early as next month.