Australia’s labour market posted a sharp gain in April, with employment rising by 89,000 jobs — nearly four times the expected increase — as the unemployment rate held steady at 4.1%, according to government data released Thursday.
The surge was led by full-time positions and marks the biggest monthly gain since February 2024. The labour force participation rate also climbed to 67.1%, just below its all-time high.
Economic Signals Strengthen Ahead of RBA Move
The latest job data reinforces the resilience of the Australian labour market, even as the Reserve Bank of Australia (RBA) is expected to cut interest rates in an upcoming policy meeting. Analysts forecast the RBA will lower the cash rate to 3.85%, the lowest level in two years.
The Australian dollar and yields on three-year government bonds — sensitive to interest rate expectations — both rose following the report.
Rate Cut Expectations Adjusted
Strong labour market conditions, along with higher-than-expected inflation and wage growth, are expected to influence the RBA’s decision-making in the months ahead. Market pricing now suggests the RBA will cut interest rates only three times in 2025, down from earlier expectations of five to six cuts.
The reassessment follows signs of global economic stabilization, including easing concerns after U.S. President Donald Trump's recent tariff adjustments on China.
