Although Australia's unemployment rate rose sharply in April, the job market remains relatively tight.

Ernst & Young Chief Economist Cherelle Murphy stated that the underemployment rate of 5.8% is well below pre-pandemic levels, and labor demand still appears to be high, with businesses continuing to report difficulties in finding suitable workers. Murphy added that the Reserve Bank of Australia recently also warned that rising gasoline prices could pose a risk of rapid price increases. She said that the Reserve Bank of Australia may need to tighten monetary policy further.