Australia unemployment rate rises to 4.5% in April as jobs fall

Australia's unemployment rate rose to 4.5% in April, reaching its highest level since November 2021, according to official data released Thursday. The increase, which exceeded market expectations for the rate to hold at 4.3%, signals a potential cooling in the nation's labor market.

The Australian Bureau of Statistics reported a net loss of 18,600 jobs for the month, a sharp reversal from a revised gain of 23,300 in March. The participation rate edged down slightly to 66.7%. A drop in female employment drove the overall decline, marking the first fall in that category since August of last year, officials said. Despite the job losses, the total number of hours worked across the economy rose by 0.8%.

The data presents a complex picture for the Reserve Bank of Australia, which has raised interest rates three times this year to combat inflation. Financial markets reacted swiftly, with the Australian dollar weakening and bond yields falling as traders significantly scaled back expectations for further rate hikes. Analysts said the figures make a pause in the central bank's tightening cycle at its next meeting in June more likely.

The RBA has held its key cash rate at 4.35% since...