Australian jobless rate rises to 4.1% in April despite job gains

Australian economy: Australian employment rose more than expected in April, yet the jobless rate increased as workforce growth outpaced job creation, indicating a gradual loosening of the labour market.

Figures released by the Australian Bureau of Statistics on Thursday revealed a net employment increase of 38,500 in April from March, surpassing market expectations of a 23,700 rise. However, full-time employment decreased by 6,100 during the month.

The unemployment rate climbed to 4.1 per cent from an upwardly revised 3.9 per cent, exceeding market forecasts of 3.9 per cent. The participation rate edged up to 66.7 per cent, while hours worked remained unchanged in April.

Stocks and other risk-sensitive assets, including the Australian dollar, saw gains following the data release. The Australian dollar surged 1 per cent overnight, marking its sharpest one-day increase of the year. It added an additional 0.1 per cent in early Asia trade, reaching a four-month high of $0.67.

(With Reuters inputs)