Australian employment rose more than expected in April, with net employment increasing by 38,500 jobs, surpassing forecasts of a 23,700 gain, Reuters reported on Thursday. However, the jobless rate climbed to a three-month high of 4.1 per cent from an upwardly revised 3.9 per cent, as workforce growth outpaced job creation. Despite the increase in jobs, the participation rate edged up to 66.7 per cent, and hours worked remained flat. The rise in unemployment diminishes the likelihood of another rate hike from the Reserve Bank of Australia (RBA), with markets now implying a 54 per cent chance of a cut in the 4.35 per cent cash rate by December. All employment gains were in part-time work, with full-time jobs declining by 6,100. The employment-to-population ratio stayed steady at 64.0 per cent, indicating that job gains are just keeping up with population growth. The RBA had anticipated that unemployment would gradually rise to 4.2 per cent by year-end, avoiding excessive rate increases to prevent a deeper economic downturn. Despite a surprise rise in first-quarter inflation to 3.6 per cent annually, easing consumer demand and slowing wage growth suggest inflationary pressures may be declining. The Australian Labour government has also announced rebates on energy bills and rents, expected to reduce consumer price inflation by half a percentage point over the next 12 months.
