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FED:Surprise unemployment jump eases interest rate fears

Australia's unemployment rate has jumped to 4.5 per cent, surprising economists and adding to the case for the Reserve Bank to keep interest rates on hold.

About 19,000 jobs dropped out of the economy in April, the Australian Bureau of Statistics reported on Thursday.

Economists had expected the unemployment rate to hold at 4.3 per cent and an extra 15,000 jobs added to the economy in the month.

The number of unemployed people rose by 33,000, ABS head of labour statistics Sean Crick said.

"Compared to what we usually see in April, more people remained unemployed this month," he said

Ahead of the release, IG market analyst Tony Sycamore said a resilient result in line with expectations would support the case for more Reserve Bank rate hikes, while an uptick in unemployment would see the rates market dial back expectations.

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