Surprise Decline In Aussie Jobs, Jobless Rate Rises

Australia's job market went down in April, which was a surprise, according to Investing.com. Unemployment grew because the economy wasn't as strong, but there were many job vacancies, which means there is still strong demand for workers.

The population in Australia decreased by 4,300 people in April. The Australian Bureau of Statistics provided this data. Expectations were for an increase of 25,000 people. This means that growth is slowing down after a surge of 53,000 people in March.

In the previous month, it was 3.5%. But now it's up to 3.7%.

In April, more hours were worked overall, but less people worked because of Easter. The ABS said that this showed that the labor shortage in Australia was being addressed by people working longer hours.

The Australian jobs market is getting cooler. It had a post-COVID boom for the past year. Interest rates in Australia are high to bring down inflation.

Data from Wednesday indicates that Australia's economy slowed down in Q1 2023. This cooling trend includes a decline in job openings.

The RBA cautioned that employment will decrease this year due to high or increasing rates. The weak job market limits the RBA's ability to raise rates.

On Thursday, the stock market went down by 0.4%.

The RBA might want more proof that the job market is slowing down before tightening policies more. Earlier in May, the bank raised interest rates unexpectedly and warned that it might keep doing it soon.

Unemployment went up in April, but it's still low compared to the past 50 years. The economy in Australia isn't great, with higher interest rates and lots of inflation. But jobs are good - they've been steady for a while now.