Canberra: Australia’s jobless rate edged higher in March while employment increased less than expected, suggesting a slight loosening of the labour market even before any impact from a wave of US tariffs.
The unemployment rate rose to 4.1% from a downwardly revised 4% in February and less than the 4.2% forecast, government data showed yesterday.
Employment rose by 32,200 – split almost evenly between full-time and part-time roles – compared with a forecast 40,000 increase. The participation rate edged up after also being revised lower.
The figures don’t yet reflect fallout from a raft of US tariffs that have escalated global trade tensions, rattling investors and businesses alike.
While Australia got off lightly with a 10% levy on all exports to the United States, as a small, open economy it’s heavily exposed to any shifts in global activity.
The Reserve Bank of Australia (RBA) has so far responded with caution, leaving interest rates at 4.1% at its April meeting.
The decision came a day before President Donald Trump’s “Liberation Day” tariff announcement, which shocked the world and sent markets into a tailspin.
Last week, governor Michele Bullock called for patience as policymakers try to come to grips with how the new US tariff regime might affect global demand and supply.
Bullock expects market and economic volatility will persist and reiterated that Australia’s financial system is strong and well placed to absorb shocks from abroad.
Money markets are pricing some chance of an outsized 50 basis-point cut by the RBA next month, with another three reductions seen this year. — Bloomberg
