Australia: Labor market reports strong outturn in April, revised data shows employment shrank in March

Seasonally-adjusted employment increased by 22,600 in April compared to the prior month, contrasting the revised 700 jobs shed in March (previously reported: +4,900 jobs) and overshooting analysts’ expectations of weaker job growth. April’s reading was driven by more full-time workers, which more than offset a decline in the number of part-time workers.

The seasonally-adjusted unemployment rate ticked up to 5.6% in April from 5.5% in March, while the trend participation rate ticked up to 65.7%--an all-time high. Measures of underemployment and labor underutilization remained fairly elevated, which suggests ongoing slack in the labor market and is likely partly behind still moderate wage growth.

Australia Unemployment Rate Forecast

FocusEconomics panelists expect the unemployment rate to average 5.4% in 2018 and 5.2% in 2019.