The unemployment rate in Australia has risen and the job market has already shown signs of fatigue before the tariff impact

Australia's unemployment rate rose slightly in March, and the number of new jobs added was lower than expected, indicating that the labor market had shown signs of fatigue before the arrival of the US tariff shock.

Data released by the Australian government on Thursday (April 17th) showed that the unemployment rate rose to 4.1% in March, slightly lower than the estimate of 4.2%, and the unemployment rate in February was revised down to 4%. The number of employed people increased by 32,200, among which full-time and part-time positions accounted for almost half each, while the estimated increase was 40,000. The labor participation rate also rose slightly, and the previous value was also revised downward.

After the release of employment data, the Australian dollar continued to decline against the US dollar, and the yield on Australian three-year government bonds, which is sensitive to interest rate policy, narrowed its losses.

Bloomberg pointed out that the current data has not yet reflected the impact of US tariffs. Although Australia only faces a 10% equivalent tariff on its exports to the United States, as a small open economy, Australia is extremely sensitive to global economic fluctuations.

The Reserve Bank of Australia kept the interest rate unchanged at 4.1% at the April meeting. Central bank governor Michele Bullock called on people last week to be patient in order to fully assess the impact of US tariffs on global supply and demand. She believes that market and economic fluctuations may persist and reaffirms that the Australian financial system is sound and capable of absorbing external shocks.

Money market pricing indicates that the Reserve Bank of Australia is likely to cut interest rates by a significant 50 basis points next month and may do so three more times within the year.