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AAP
AAP
Business
Colin Brinsden, AAP Economics and Business Correspondent

Jobless rate holds steady at four per cent

Prime Minister Scott Morrison says his priorities are "jobs, jobs, jobs, jobs and jobs". (AAP)

Australia's unemployment rate remained steady at four per cent in March, although female unemployment fell to its lowest since 1974.

The Australian Bureau of Statistics said 17,900 people joined the workforce in the month, fewer than economists had been expecting.

Economists had expected the jobless rate to fall to 3.9 per cent, which would have been been the lowest since 1974.

However, the unemployment rate continued to fall faster for women than for men.

"The unemployment rate for women fell from 3.8 per cent to 3.7 per cent, the lowest it has been since May 1974," ABS head of labour statistics Bjorn Jarvis said on Thursday.

"It remained at 4.2 per cent for men, its second lowest level since November 2008 and just above the rate from December 2021 of 4.1 per cent."

The jobs recovery has been the stand-out feature of Australia's rebound from recession, when the unemployment rate hit a 22-year high of 7.4 per cent during the downturn in mid-2020.

Both the Reserve Bank of Australia and Treasury are forecasting an unemployment rate of 3.75 per cent later this year.

"While there was little change in the key metrics this month, the labour market remains relatively tight, which should allow for a pick-up in wages growth this year," BIS Oxford Economics head of macroeconomic forecasting Sean Langcake said.

As such, economists are expecting a rise in the cash rate by the Reserve Bank of Australia in June.

Prime Minister Scott Morrison and Labor leader Anthony Albanese were out campaigning ahead of the May 21 election and both chose to address the media before the latest jobs figures were released.

Earlier in the week, Mr Morrison pledged 1.3 million jobs would be created within the next five years, building on gains in past years.

"My priorities are jobs, jobs, jobs, jobs and jobs," Mr Morrison told reporters in Launceston on Thursday.

"The world we are facing at the moment means my government will first and foremost be focused on our economic recovery with the economic plan that is creating the jobs."

But his promise comes at a time when there are already acute skills shortages, partly reflecting the absence of skilled migrants due to closed international borders trying to contain the pandemic.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar said businesses are facing the most severe workforce shortages in 48 years, alongside the highest job vacancy rates since records began.

"Without a comprehensive strategy to address workforce shortages, businesses who are already stretched with an ultra-tight labour market will be pushed to breaking point," he told AAP.

"The next federal government must pull all the levers it can to address chronic skills shortages."

Mr Albanese told reporters in the NSW town of Cessnock he also wants to see the unemployment rate as low as possible.

But he noted there were half a million Australians who had to work three jobs or more.

"That is an increase of 50 per cent since this government came to office," he said.

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