Iran war impact emerges in Australian jobs data as risks grow

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Australia could be heading for another interest rate hike in May, as early signs of economic pressure begin to emerge.

New data from the Australian Bureau of Statistics shows unemployment held steady at 4.3% in March. Around 18,000 people joined the workforce, pointing to continued strength in the jobs market.

The solid result is increasing expectations that the Reserve Bank of Australia may lift the cash rate again from its current 4.1% at its May meeting.

Economists say the figures only capture the early phase of the Iran conflict, meaning the full economic impact especially from rising fuel costs has yet to be seen.

Analysts warn the strong labour market gives the RBA room to act. Inflation remains a key concern, and policymakers may prioritise controlling prices over supporting employment.

While Australia’s jobless rate is still low by global standards, some experts say cracks could appear in the coming months.

Industries that rely heavily on fuel are already under pressure. Construction, transport, farming, and manufacturing are among the most exposed, with rising diesel costs squeezing margins.

Regional businesses may also feel the strain due to higher transport expenses.

Economists caution that the real impact of the conflict will take time to flow through the economy, with effects on hiring and investment likely to become clearer in the months ahead.

Source : News.com.au

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