"This should reinforce to the policy makers that the labor market still remains soft"
- Joshua Williamson, a senior economist at Citigroup Inc.
Australia's unemployment rate jumped in March to the highest level in more than three years and is expected to increase further, adding to bets the nation's central bank will cut its key interest rate. The jobless rate soared to 5.6% from 5.4% a month earlier, according to data published by the Australian Bureau of Statistics. The total number of people with jobs declined by more than 36 000, exceeding economists' forecast fivefold.
"This should reinforce to the policy makers that the labor market still remains soft," said Joshua Williamson, a senior economist at Citigroup Inc. in Sydney. "This rounds off a week of very soft data for Australia. It suggests that the rebalancing from the mining to non-mining economy will not go particularly smoothly. It reinforces the need for another cut in rates."
Meanwhile, another report showed that home-loan approvals rose to 2.0% in February from a month earlier, while economists had anticipated a 1.5% gain. Demand for home loans remains weak even after a year-long period of interest rate cuts by the RBA. However, confidence in home prices outlook rose to the highest level in almost three years, a nongovernment survey indicated Friday.
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