RBA interest rates: April jobs data shows massive 89,000 new roles created in a month
Australia has posted another month of exceptionally strong employment growth with 89,000 jobs added in April.
The unemployment rate remained at 4.1 per cent, according to fresh data from the Australian Bureau of Statistics released on Thursday morning.
There was a huge influx of workers into the labour force in April — and the share of Australia’s population in jobs is close to a record high.
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By continuing you agree to our Terms and Privacy Policy.Almost three quarters of the employment growth for the month was among women. Most roles were full-time.
The numbers are the last key piece of the economic puzzle before the Reserve Bank meets on Monday and Tuesday next week to lock in an interest rate decision for May.
Economists and markets had widely tipped a rate cut as inflation comes under control and amid the chaos of US President Donald Trump’s sweeping and largely baseless trade war.
April jobs growth was almost four times what the market had expected, IG Australia market analyst Tony Sycamore said.
He said traders had swiftly dialled back the chances of a rate cut from 90 per cent to 80 per cent following the news.
“Today’s jobs report has provided yet another reminder of the resilience of the Australian labour market,” Mr Sycamore said.
He said rate relief was still likely, however.
VanEck head of investments Russel Chesler warned there was a risk of inflation bouncing back beyond the RBA’s 3 per cent target band.
He said a rate cut was likely but not “strictly necessary” given the strong labour market, solid retail sales and rising house prices.
HSBC’s Paul Bloxham attributed the big lift in employment to statistical volatility, but tipped the trade war would push the RBA over the line for relief; while AMP’s My Bui said borrowers should expect “this rate cut cycle will be shallow”.
She expected the cash rate would fall to 3.35 per cent by the end of the year.
The data also comes amid ongoing debate between the RBA and economists about how low unemployment can remain without extra pressure to inflation.
Wages picked up pace in data released this week and, at 3.4 per cent, were running faster than inflation for the year to March.
Education, healthcare and social assistance were among the top performers in the quarter — and analysts slated those gains to government-backed pay deals for aged care and early childhood services.
