Jobless rate steady at 4pc

The key jobless measure was unchanged from February, remaining on the cusp of its lowest level since 1974.

The massive fiscal boost and rates at nearly zero through the pandemic have helped drive unemployment down towards its lowest in decades. Picture: NCA NewsWire / David Crosling

Unemployment has held steady at 4 per cent in March, remaining just shy of its lowest level since 1974 and easing pressure on the Reserve Bank to hike rates in the middle of the election campaign.

Australian Bureau of Statistics figures released on Thursday showed the economy created 17,900 jobs in March, but fell short of the consensus forecast for a 30,000 lift, which would have pushed the key jobless measure to a historic 3.9 per cent.

The east coast floods and a high number of Australians at home with Covid during March, however, pushed total hours worked down 0.6 per cent.

Women’s unemployment rate fell further from near 48-year lows, from 3.8 per cent in February to 3.7 per cent. It remained at 4.2 per cent for men, the second lowest level since November 2008 and just above last December’s rate of 4.1 per cent.

The underemployment rate – which measures those with jobs but who want to work more hours but are unable to – fell from 6.6 per cent to 6.3 per cent, the seasonally adjusted figures showed.

Barrenjoey chief economist Jo Masters said the latest employment figures showed the RBA’s crisis-era monetary policy settings were no longer warranted.

Ms Masters said she expected the RBA to wait to see key wages data later in May before lifting the cash rate from 0.1 per cent to 0.25 per cent at the June meeting.