Jobs figures increase rate likelihood

Further evidence of labour market tightness has increased the pressure on the Reserve Bank of Australia to raise interest rates next month. The Australian Bureau of Statistics figures released yesterday show an extra 31,700 fulltime jobs were created in March, while part time employment dropped by 21,200. The figures may increase the likelihood of a rate rise this year due to concerns about the effect that wages pressure will have on inflation. The market is betting on a 60 per cent chance of rates going up next month.