Unemployment rate up to 4.5 per cent in April

Australia’s unemployment rate climbed to 4.5 percent in April, marking the highest level since November 2021, according to the latest monthly data released on Thursday. The increase of 0.2 percentage points corresponded with 33,000 fewer people employed, with female unemployment rising by 0.4 points to 4.4 percent, while male unemployment remained steady at 4.6 percent. Economists attributed the rise to broader economic pressures, including inflation and reduced business confidence. Marc Jocum, strategist at Global X ETFs, described the labor market as weakening under rising input costs, Middle East uncertainty, and proposed policy changes. He suggested the data would influence the Reserve Bank’s (RBA) decision-making, with markets anticipating no immediate rate hike in June but potential action in August if inflation persists. Treasurer Jim Chalmers avoided directing the RBA on interest rates but acknowledged the central bank would consider labor data. Meanwhile, the Australian Council of Trade Unions (ACTU) blamed global factors like the US-Iran conflict and oil shocks, urging the RBA to prioritize job protection. ACTU assistant secretary Liam O’Brien highlighted concerns over falling female employment and called for the RBA to uphold its full employment mandate. Oxford Economics Australia economist Harry McAuley dismissed a direct link to the US-Iran crisis, arguing the rise reflected pre-war economic sentiment and expected oil crisis impacts. He projected the unemployment rate could peak at 4.8 percent by late 2027 due to slower hiring amid declining business confidence. Anders Magnusson, chief economist at BDO, noted the labor market was easing but cautioned that increased hours worked suggested a more gradual slowdown than headline figures implied.