Australia Unexpectedly Adds Jobs, Unemployment Edges Up to 5.2%

(Bloomberg) -- Australian employers unexpectedly added jobs, likely bolstered by hiring at supermarkets and associated supply chains to assist with the spending surge ahead of the lockdown and confounding the expectations of most economists.

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The jobless rate edged up to 5.2% from 5.1% in February vs economists median estimate of 5.4%, data from the statistics bureau showed in Sydney Thursday. The participation rate held at 66%.

“Today’s data shows some small early impact from COVID-19 on the Australian labor market in March, but any impact from the major COVID-19 related actions will be evident in the April data,” said Bruce Hockman, chief economist at the bureau.

The result comes as a surprise given companies ranging from Australia’s two major airlines to casino operator Star Entertainment Group Ltd. to department store chain Myer Holdings Ltd. furloughed or stood down tens of thousands of workers as demand collapsed amid forced shut downs.

The government and central bank responded with a massive fiscal-monetary injection worth 16.4% of gross domestic product to support an economy spiraling toward its first recession in almost 30 years. The Treasury forecasts unemployment to climb to 10% this quarter and said it would probably have reached about 15% if not for the government spending measures.

This article was originally published on Bloomberg

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