19.04.201821:25:00UTC+00Australia Unemployment Rate Steady in March

Australian employment barely increased in March while a sharp downward revision to February stopped a record-breaking run of gains, a disappointing outcome that hurt the local dollar and reinforced the case against a rate hike.

The country's jobless rate stood at 5.5 percent in seasonally adjusted terms in March, according to the Australian Bureau of Statistics, from a revised figure of 5.5 percent for February (previously 5.6 percent).

Data showed only 4,900 net new jobs were added in March, short of forecasts for 21,000. February was revised to show a 6,300 drop instead of the initial 17,500 increase, ruining what had been 17 consecutive month of growth.

The Australian economy shed 19,900 full-time jobs in March, from 20,100 increase in February (previously 64,900) while 24,800 part time roles were added. March was significantly worse with full-time positions dropping 19,900.

The news was not all bad with annual job growth of 3.0 percent still twice the pace of U.S. job creation.

The participation rate fell to 65.5 percent, having peaked at 65.7 percent in January as more women entered the labour force.

The strength of employment has been one of the brightest parts of economy, so the recent report would likely cause some unease at the Reserve Bank of Australia (RBA). Growth in the resource-rich economy slowed in the fourth quarter of last year as bad weather hit exports.

The RBA noted in its April policy meeting minutes released that monthly increases in employment had moderated in the first few months of 2018. It said levels of underemployment remained “at relatively high levels”, adding that “leading indicators continued to point to above-average growth in employment in the period ahead”.