Australia's Job Market Surges With 89,000 New Roles, Unemployment Steady At 4.1%

Australia's labor market delivered an unexpected boost in April, with 89,000 new jobs added -- far exceeding forecasts and highlighting continued economic resilience.

The strong job gains come despite growing concerns over global trade tensions and weak consumer spending. Job advertisements remain above pre-pandemic levels, and wage growth in the private sector continues to be moderate, supporting overall labor market stability, Reuters reported.

However, economists still expect the Reserve Bank of Australia (RBA) to cut interest rates next week, as inflation continues to ease and global economic risks grow.

According to the Australian Bureau of Statistics (ABS), the unemployment rate held steady at 4.1% in April, unchanged from March on a seasonally adjusted basis.

"The Australian labor market has been very resilient throughout the past year, with unemployment rate hovering just above 4% and solid jobs growth," My Bui, an economist at AMP, said.

The gains were led by women, who accounted for 65,000 of the new jobs, compared to 24,000 for men. Full-time employment for women rose by 42,000, while part-time roles increased by 23,000, ABC reported.

Over the past year, total employment has grown by 390,000 people -- a 2.7% increase -- outpacing the 2.1% growth in the working-age population.

The number of people actively seeking work rose slightly by 6,000 in April, contributing to a 95,000-person increase in the labor force overall. The participation rate has increased by 0.3 percentage points to 67.1%.

RBA rate cuts expected despite job surge

Meanwhile, inflation has continued to decline, with annual headline inflation falling from 4.1% to 2.4%. The easing trend gives the RBA room to consider rate cuts, despite a strong jobs report.

The central bank left interest rates unchanged at 4.1% in April but hinted it would revisit its monetary policy stance in May. Analysts expect a 0.25 percentage point rate cut, although the strong employment data may cause the RBA to move more cautiously in the coming months.

ANZ economists Aaron Luk and Adelaide Timbrell noted that while the jobs increase was large, hours worked remained flat -- suggesting the spike may be temporary.