Australia's Job Market Remained Tight in March

By James Glynn

SYDNEY--Australia's unemployment rate was unchanged in March even as the economy began to feel the initial shocks of surging oil prices and a second interest-rate rise in as many months.

The unemployment rate remained at 4.3% in March, the Australian Bureau of Statistics said Thursday.

Employment grew by 17,900 over the month, with firms adding 52,500 full-time jobs in the month, the ABS said.

The data comes as the Reserve Bank of Australia warns that it may need to raise interest rates further in the coming months to cool inflation, which is already well above target and threatening to go much higher.

Deputy RBA Gov. Andrew Hauser said this week that the central bank wasn't confident that current interest rates were high enough to bring inflation down.

The RBA's next policy meeting is in May, with many economists expecting a third interest-rate increase.

The solid employment data underscores that the economy was growing strongly in the first months of the year, pushing inflation higher, and warranting interest-rate increases in February and March.

With the war in the Middle East now driving up fuel costs, inflation is expected to push toward 5.0% on the year in the second quarter, double the level that the RBA would like to see it at.

Still, as the fuel shock drags on, the risk of weaker economic activity will rise sharply.

Some economists are warning of a recession before the end of the year if fighting in the Middle East doesn't end soon and energy supplies through the Strait of Hormuz aren't restored.

-Write to James Glynn at [e-mail]

(END) Dow Jones Newswires

04-15-26 2210ET