Australia’s economy shed 6,600 jobs last month as employers responded to weak demand by trimming staff numbers.
The unemployment rate in March was 3.8%, the Australian Bureau of Statistics announced on Thursday. That compared with the previously reported 3.7% for February and the 3.9% jobless rate economists had forecast for last month.
A total of 27,900 full-time jobs were added last month, while the economy shed 34,500 part-time roles. The net 6600 job loss compared with a gain of 10,000 positions economists had tipped. This tally has been volatile in recent months and included a surprising 116,500 leap in employment in February.
Both the Reserve Bank and treasury had predicted the unemployment rate would rise modestly as the impact of 13 official interest rate rises squeezes demand in the economy. The organisations expect the jobless rate to reach about 4.3% by June.
Australia’s labour market has been strong since the rebound from the Covid pandemic, unemployment touching 3.4% in November 2022, the lowest since the 1970s.
Prior to the release of the labour force figures, investors were betting there was only a minimal chance the RBA would use its next board meeting on 6-7 May to cut its cash rate. Expectations for the timing of the first rate reduction has lately pushed out into next year, with a 25 basis-point cut now only fully priced in by March.
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