Australia’s unemployment rate edged up to a 9-month high in April, despite an increase in the number of full-time roles.
Australia’s unemployment rate rose to seasonally-adjusted 5.6 per cent in April from 5.5 per cent in the previous month, according to the Australian Bureau of Statistics. That was above the 5.5 per cent forecast in a Reuters poll and broke from a four-month run at the same level.
The number of full-time roles increased by 32,700 against a revised fall of 25,100 in March (previously 19,900) while the number of part-time jobs fell by 10,000 from a revised 24,400 in the previous month (previously 24,800)
James Craig, chief economist for Commonwealth Bank of Australia said:
Normal service has resumed. After weakness in February and March, employment bounced back in April with job growth exceeding forecasts. More people are looking for work and most found jobs in the past month…
And clearly there is no pressing need for the Reserve Bank to change interest rate settings in any direction. The economy doesn’t need speeding up or slowing down. As the Reserve Bank noted this week, most people should view with confidence the fact that interest rates have been steady for so long.
Kate Hickie, Australia and Ne Zealand economist for Capital Economics said:
Looking ahead, while the exceptionally strong rates of jobs growth throughout 2017 are unlikely to return, leading indicators point to a decent enough rate this year. Even so, the excess slack in the market and structural forces will prevent wage growth from rising much above its current rate of 2.1 per cent.