Australia’s unemployment rate has held steady at 4 per cent – unchanged from last month – defying expectations that it could drop to a 50 year low.
The Australian Bureau of Statistics on Thursday reported about 18,000 more people got jobs in March, missing market expectations of a 30,000 rise, while monthly hours worked fell by 10 million hours.
The sharemarket rose modestly on the data as traders bet on the Reserve Bank now holding off until after the May 21 federal election before it lifts the rate from its current record low 0.1 per cent.
The benchmark ASX 200 was last up 0.6 per cent to 7523.0 while the Aussie dollar bounced around and was at 74.57 US cents.
Economists had expected the March unemployment rate to fall to 3.9 per cent, which would have been the lowest since late 1974.
It is still expected to drop below 4 per cent sometime this year.
Full-time employment in March increased by 20,500 to 9.25 million people, while those in part-time employment fell by 2,700 to 4.1 million
Underemployment and underutilisation edged lower to 6.3 per cent and 10.3 per cent – both at levels not seen since 2008 – consistent with the recent acceleration in wages growth
Economists and homeowners will now be closely watching whether these figures will be enough for the Reserve Bank to hike interest rates for the first time in 12 years when it meets on May 3.
This appears to be an increasingly unlikely scenario, with people already divided on whether the RBA would pull the trigger during an election campaign.
