Australia’s employment figures surged in April, adding 89,000 jobs. This was much higher than the expected 20,000 increase. The rise was mainly due to more women getting jobs.
This pushed the participation rate back up to 67.1%. Despite the strong job growth, the unemployment rate stayed at 4.1%. Hours worked also did not change much.
These numbers keep expectations high that the Reserve Bank of Australia (RBA) will cut interest rates next week. However, any further cuts may be more gradual. The April jobs report beat many analysts’ forecasts.
It comes as the economy is sending mixed signals. The job market is tight, but inflation pressures and global economic uncertainty are making the RBA think about more rate cuts.
Australia’s job market shows resilience
The ASX stock market closed mostly flat. Gains in financial stocks more than made up for losses in mining and energy. The market is almost certain the RBA will cut rates next Tuesday.
It also expects three cuts by the end of the year, even with the surprise jump in jobs. Volvo announced it will start making electric heavy-duty trucks in Brisbane next year. A third of the truck’s production will be based in Australia.
Volvo recently delivered 10 electric trucks to Linfox, a logistics company. This shows Volvo’s commitment to local manufacturing and being environmentally friendly. There is still interest in whether the new Labor government will give a 20% discount on HELP student debt.
This would happen before inflation indexation on June 1. However, the policy depends on passing new laws. The discount may be applied to past debt.
