The number: Australian employment decreased by around 7000 people in March. Unemployment rose to 3.8 per cent from 3.7 per cent in February, in seasonally adjusted terms. Analysts had forecast employment to add 10,000 people and for the unemployment rate to move 3.9 per cent. Why it matters: The strength of the labour market is being watched closely by the Reserve Bank of Australia as it attempts to bring inflation back to target. A low rate of unemployment could push back expected rate cuts, while a weakening job market could force the central bank to cut sooner. What has changed: In February, employment unexpectedly grew by around 116,000 people and the unemployment rate fell to 3.7 per cent, after a larger-than-usual number of people in December and January said they were waiting to start or return to work. What’s next: Consumer price data will be released next week ahead of the next cash rate decision from the RBA on May 7.
