The likelihood of a rate hike in June has shrunk after a surprise jump in the unemployment rate showed the Iran war is having a material impact on Australia's economy.
While bad news for workers, the rise in the jobless rate from 4.3 per cent to 4.5 per cent in April will be greeted with a sigh of relief by the Reserve Bank.
About 18,600 jobs dropped out of the economy in the month, defying economists' expectations for a rise of 15,000 jobs and a steady unemployment rate in official data released by the Australian Bureau of Statistics on Thursday.
