Investing.com-- Australia’s job market grew much more than expected in April, signaling that the labor market remained tight and providing the Reserve Bank of Australia with lesser impetus to cut interest rates.
The total number of employed people rose by 89,000 in April, data from the Australian Bureau of Statistics (ABS) showed on Thursday. The print was well above expectations of 20,900 people, and also rose sharply from the 32,200 rise seen in the prior month.
The spike in workers brought Australia’s participation rate- the percentage of the population currently in the labor force- to 67.1%, putting it within spitting distance of historic highs.
Australia’s unemployment rate remained unchanged at 4.1%.
The strong labor reading indicated that Australia’s labor market remained tight despite slowing economic growth- a trend that gives the Reserve Bank less impetus to cut interest rates.
Thursday’s jobs data comes just days before a RBA meeting, where analysts are split over whether the central bank will cut interest rates further. The RBA cut interest rates by 25 basis points earlier this year, but signaled a largely data-driven approach to further easing.
Uncertainty over global economic growth and trade is also expected to limit the RBA’s appetite to cut rates.