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Australia's unemployment hits 4-1/2 year high, lessens risk of rate rise
The softer labour data pushed markets to price a lower chance of another Reserve Bank of Australia rate hike in June, analysts said.
- The Australian Bureau of Statistics reported on Thursday that Australia's unemployment rate lifted to 4.5 per cent in April, marking the highest level since November 2021 during the COVID pandemic.
- Rising inflation, interest rate hikes, and the war in Iran are impacting the business environment; 33,000 additional people joined the unemployed despite total hours worked increasing.
- Sean Crick, head of labour statistics at the Bureau, said employment fell for both full-time and part-time roles. "Compared to what we usually see, more people remained unemployed," Crick noted.
- The ASX200 rallied as investor expectations for a June rate hike collapsed to 9 per cent from 22 per cent. Capital Economics senior economist Abhijit Surya said the result makes it "all but certain that the Bank will leave rates on hold at 4.35 per cent."
- Harry McAuley, economist at Oxford Economics Australia, expects unemployment to peak at 4.8 per cent in late 2027. KPMG economist Brendan Rynne cautioned that "further rate rises later this year are likely" despite the RBA potentially pausing next month.
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23 Articles
23 Articles
Australia’s Surprising Jump in Unemployment Trims Rate-Hike Bets
Australia’s unemployment rate climbed to the highest level since November 2021, suggesting the labor market is cooling faster than anticipated and prompting traders to dial back expectations for further interest-rate increases.
·United States
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Australia’s jobs market weakens as unemployment hits highest level since 2021
Australia’s unemployment rate rose to 4.5 per cent in April, the highest since 2021, after nearly 19,000 jobs were lost, strengthening expectations that the Reserve Bank of Australia may pause further interest rate hikes
·Mumbai, India
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Sydney Morning Herald+3 Reposted by 3 other sources
Economy crunched as unemployment hits highest level since pandemic
The Iran War and inflation are starting to hit Australia’s jobs market. Experts say this has effectively killed the likelihood of another rate rise next month.
·Sydney, Australia
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Total News Sources23
Leaning Left5Leaning Right4Center4Last UpdatedBias Distribution38% Left
Bias Distribution
- 38% of the sources lean Left
38% Left
L 38%
C 31%
R 31%
Factuality
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