Australia’s unemployment rate held steady in January at 4.1%, but job growth fell short of expectations. Official data revealed a gain of only 17,800 positions, significantly below the forecasted 20,000 increase and a sharp slowdown from December’s robust 65,200 rise. Full-time employment surged by 50,500, partly offset by a 33,000 decline in part-time roles.

The labor market remains tight, with hours worked climbing 0.6% overall, driven by strong full-time hours. This moderation follows the Reserve Bank of Australia’s (RBA) recent hike to the cash rate at 3.85%, signaling persistent inflation pressures and a still-firm jobs market. The central bank has indicated further rate increases this year to curb inflation, keeping monetary policy tight.