Australia Unemployment Rate Go Higher

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Australia Unemployment Rate Go Higher

Australian Unemployment Rate Reached 4.1% In April

An improvement was seen in the Australian job market as the number of available jobs showed a healthy increase. However, the unemployment rate in Australia also jumped as a lot more people are now looking for a job.

Over all, the number of jobs in Australia increased by 38500 during April. This was higher than the forecast for 22400 and thus highlights that the Australian job market remains tight.

Participation Rate Reached 66.7%

Participation rate, which is also a key indicator for the labor market, also jumped from 66.7% in March to 66.6% during April. Once again, this metric above the forecasts which was calling for a static value.

However, the one metric that was disappointing was the unemployment rate, which moved up to 4.1% during April. According to forecasts, the unemployment rate was expected to be around 3.9% during the month.

The officials also revised March's jobless rate to around 3.9%, which means there was a +0.2% increase during April.

According to the ABS head of labor statistics, an increase was seen in the number of people who are looking for work. Additionally, this higher number also hints that many people had a job, but they were just waiting to start.

No matter how we look at this data, there's no doubt that the unemployment rate in Australia has gone up. The data also showed that the market is still very tight while the wage growth shows signs of stagnation.

The employment-to-population ratio didn't show any change and thus remained at nearly 64% during the month. This is a sign that the population growth is showing a similar pace to the employment growth.

Overall, the labor market of Australia is still strong, which means the RBA now has more room to keep the rates at a high level. And when we consider the high inflation during Q1, experts believe that the RBA will likely keep the rates unchanged in the short term.

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