Unemployment remains steady

Western Australia’s unemployment rate has remained at 4.9 per cent in April, in line with the national rate which has held steady at 5.8 per cent.

The latest official statistics show the total number of people with jobs nationally has risen by 14,200, to 11.6 million, well above economists’ forecasts of 8,000.

The release of better-than-expected jobs figures has led economists to believe the central bank is likely to leave interest rates on hold.

“For the Reserve Bank of Australia, I don’t think it will change the outlook to keep rates on hold for a while,” National Australia Bank head of research Peter Jolly said.

RBC Capital Markets senior economist Su-Lin Ong was said these unemployment rate figures alone would not change the outlook for the Reserve Bank of Australia’s cash rate.

“The market is a little bit complacent about how long the cash rate will remain unchanged,” she explained.

“If we get continued employment generation and ongoing improvement in the leading indicators for employment, then the RBA would be unlikely to stay on hold.”

With the May 13 budget on approach, the rise in full-time employment and a stable jobless rate gives hope for Treasurer Joe Hockey’s first budget.

Commonwealth Bank chief economist Michael Blythe said the employment backdrop for the upcoming budget was now looking better than previous estimates had indicated.

“It should have a positive impact on job security fears and feed into consumer confidence,” he said.