Key insights
- Australian jobs growth slowed in March, but the unemployment rate remained steady. The RBA is focused on inflation risks and may raise rates further. While the Australian labor market is downstream of economic activity, some easing would be welcome. This news has a slightly negative influence on US equities as it highlights global inflationary pressures and potential for further monetary tightening by central banks, which could indirectly impact US economic growth.
Investing.com-- Australia’s unemployment rate held steady in March, while job growth slowed from the previous month, pointing to a still-resilient but moderating labour market, official data showed on Thursday.
The Australian Bureau of Statistics said employment rose by 17,900 in March, below February’s strong 48,900 increase, but broadly in line with expectations of 19,100 additions.
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The unemployment rate remained unchanged at 4.3%, matching forecasts, while the participation rate edged lower to 66.8% from 66.9% in the prior month.
Job gains were driven by full-time employment, which surged by 52,500 positions, offsetting a decline of about 30,500 in part-time roles. The shift toward full-time work suggests underlying strength in labour demand despite some cooling in hiring momentum.
The number of unemployed people fell slightly, while total hours worked rose by 0.5% on the month, indicating continued utilization of labour capacity.
However, the moderation in headline employment growth and a dip in participation could signal early signs of easing conditions, which policymakers will monitor closely.
The data comes as the Reserve Bank of Australia remains focused on inflation risks. The central bank has already raised rates twice this year to 4.1% and has signaled uncertainty over whether current settings are sufficiently restrictive to bring inflation back to its 2–3% target.
"Granted, the labour market is downstream of economic activity, and it could take a while for cracks to show up. However, with the RBA judging that employment is above its maximum sustainable level, some easing would probably be welcome," Capital Economics analysts said in a note.
"The more pressing concern for the Bank will be the ongoing surge in price pressures," analysts wrote, adding that they expect the RBA to deliver two more 25bp hikes, taking the cash rate to a peak of 4.60% in Q3.
The Australian dollar’s AUD/USD pair rose 0.2% on Thursday.