Australia employment surges past expectations in April, jobless rate steady

[SYDNEY] Australian employment blew past expectations in April, driven by an increase in full-time roles for women, data showed on Thursday, while the unemployment rate held steady as an even larger number of people sought employment.

The better-than-expected headline figure sent the Australian dollar 0.3 per cent higher to US$0.6446, while three-year bond futures extended earlier declines to be down 10 ticks at 96.29.

Still, investors remain confident the Reserve Bank of Australia will cut rates by a quarter point to 3.85 per cent at its May 20 meeting, due to cooling inflation at home and global uncertainty caused by US tariff policies.

Figures from the Australian Bureau of Statistics showed net employment jumped 89,000 in April from March, when they rose an upwardly revised 36,400. That was far above market forecasts for a 20,000 rise and the biggest monthly increase in over a year.

The jobless rate held at 4.1 per cent, as expected, as the participation rate climbed back to near record highs at 67.1 per cent.

Despite the strength in employment, hours worked were unchanged, after two months of falls.

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The RBA held rates steady at 4.1 per cent in April but opened the door to a rate cut by stating that the meeting in May would be an opportunity to revisit monetary policy settings.

Global tariff risks and a disappointing recovery in consumer spending have clouded the economic outlook for Australia but the labour market has so far proven resilient.

The unemployment rate remains low and job advertisements are stabilising above pre-Covid levels. Wages have been well-behaved, with growth in the private sector mostly subdued.

The central bank is not expecting further loosening in the labour market, tipping unemployment to peak at 4.2 per cent this cycle. REUTERS