The Australian employment report for April 2024 showed the unemployment rate jumping to 4.1% from 3.9% expected and 3.8% in March.
Let me cover the excuses you'll hear
- The participation rate rose. OK, yes it did
- Employment (jobs added) rose 38.5K. Yes, it did. Full time employment fell 6K, the entire jobs added were part time. This is not a sign of strength
The unemployment rate jumped above 4% back in January and has since, thankfully, fallen. But, now its at 4.1% and its highest since January 2022.
While still on the tight side the jobs market is slowing down. Thoughts of the RBA hiking rates are way off the mark. They won't be cutting until inflation comes lower, but they will be very reluctant to hike again.
AUD/USD slightly down after a good rally on a slight cooling in US inflation:
