Australian unemployment rate dropped to two and a half years low in March, making it unlikely that the Reserve Bank of Australia will cut interest rates further.
Unemployment rate dropped to 5.7 percent from 5.8 percent recorded in February, said the Australian Bureau of Statistics. A total of 26,100 jobs were created during the month, while almost 8,800 full-time jobs were lost, 34,900 part-time employments were created.
The numbers shows temporary jobs were being created especially in industries such as hospitality, tourism and healthcare where employers rely more on casual labour, and lower jobs in traditional industries like mining and manufacturing.
The stronger labour market is an indication that record-low interest rates are aiding economic revival, even though outlook for business investment remains weak because of slowdown in China, Australia’s biggest trading partners. The results are manifesting in tourism, education, construction, etc.
“There’s clearly a trend now of a stronger labor market than many analysts were allowing for, which is consistent with other positive economic indicators,” said Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors Ltd. “Any hope of an imminent rate cut is well and truly out the window on the back of these figures.”
Australian dollar rose as high as 77.16 U.S. cents after the data was made public.