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Economists rush to change interest rate forecasts as jobless rate jumps

A drop in female employment has driven the overall fall. (AAP: Dean Lewins)

The increase in the jobless rate was driven by a drop in female employment.

Financial markets have now priced in a slightly lower chance of a Reserve Bank interest rate hike next month.

The unemployment rate rose by 0.2 percentage points to 4.5 per cent in April, up from 4.3 per cent in March, according to the Bureau of Statistics.

The number of employed people fell by 18,600 in April, while the number of unemployed people rose by 33,000.

The number of unemployed people looking for full-time work increased by 11,000, and unemployed people looking for part-time work increased by 22,000.

Economy crunched as unemployment hits highest level since pandemic

High interest rates, cost-of-living pressures and the war against Iran may have pushed the Australian economy into a downturn after new figures showed unemployment jumping to its highest level since the depths of the pandemic.

Expectations of further interest rate rises by the Reserve Bank this year dropped sharply after the Australian Bureau of Statistics reported the jobless rate hit 4.5 per cent in April, following a fall of 18,600 in the number of people with a job.

The epicentre of the job losses was the nation’s biggest economy, NSW, with the state shedding 44,000 positions last month, while those groups most likely to be axed first by businesses at the start of downturn, young people and women, also suffered job losses.

Youth job losses push unemployment rate to 4.5pc

Job losses among younger Australians have pushed up the unemployment rate to an almost five-year high of 4.5 per cent, giving the Reserve Bank of Australia room to leave interest rates unchanged at its next meeting.

The total number of people employed fell for the first time this year, driven by 56,400 fewer people aged 15 to 24 years old working in April. Youth unemployment is now at 11.1 per cent, the highest since October 2021.

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