Australia: Jobs soar by 89,000 in April as unemployment steady

Australian employment soared in April while the jobless rate held steady as more people sought work, highlighting the resilience of the labor market at a time when the Reserve Bank is expected to reduce interest rates further.

Employment jumped by 89,000 — led by full-time roles — almost four times a predicted 22,500 increase and the biggest gain since February last year, government data showed Thursday. Unemployment held at 4.1% as the participation rate spiked to 67.1%, just shy of a record.

The currency and the yield on policy-sensitive three-year government bonds both climbed following the release. The data come as the RBA is expected to ease policy on Tuesday to bring the cash rate to a two-year low of 3.85%. 

The report caps a week of data that are likely to reinforce the RBA’s watchful stance on price pressures in the economy — both inflation and wages came in stronger than anticipated and the jobs market remains unceasingly strong.

Money market pricing now implies the RBA will only cut interest rates three times this year, including the easing on Tuesday.

Just four weeks ago, when US President Donald Trump’s massive tariffs on China threatened to send the world economy into a tailspin, markets were anticipating at least five RBA rate cuts with a decent chance of a sixth.