🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Australian employment blows past expectations in March

Published 04/13/2023, 10:00 AM
© Reuters.
AUD/USD
-
AXJO
-

By Ambar Warrick

Investing.com -- Australia’s job market grew far more than expected in March, data showed on Thursday, pointing to a tight labor market that could keep inflation elevated and provide more headroom to the Reserve Bank to potentially hike interest rates again.

The number of employed people in the country increased by 53,000 in March, far more than expectations for a rise of 20,000, according to data from the Australian Bureau of Statistics. The participation rate also grew to 66.7%, while unemployment remained steady at 3.5%.

While monthly working hours fell slightly in March, they continued to trend at relatively high levels, further indicating a tight labor market.

"The strength in hours worked relative to employment shows the high level of demand for labor, to some extent, is being absorbed by people working more hours,” Lauren Ford, ABS head of labor statistics said in a note.

The stronger-than-expected data comes amid a continued labor shortage in the country, which has kept the jobs market running tight over the past year. But this has also disrupted some economic activity, with several businesses facing increased difficulty in finding skilled workers.

The Australian dollar shot up 0.4% after the data, given that it could pressure the Reserve Bank of Australia (RBA) into raising interest rates further.

While the bank recently announced a pause in its rate hike cycle, Governor Philip Lowe warned that stubborn inflation could invite more policy tightening.

Strength in the labor market has been one of the few bright spots in the Australian economy, and has also factored heavily into the sharp rise in inflation seen over the past year.

While inflation eased over the past two months, it still remained well above the RBA’s 2% to 3% target range.

The central bank is also targeting some cooling in the jobs market as it moves to curb high inflation. The bank hiked rates by over 300 basis points in the past 12 months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.