A surprising surge in employment in March on the back a revival in full-time work should provide some comfort to the Reserve Bank of Australia.
The number of people with jobs rose by 60,900 in the month, the strongest gain since October 2015, and smashing market forecasts of a gain of 20,000.
Full-time jobs drove the growth, with 74,500 positions created, the largest rise since June 2011, offsetting a fall of 13,600 in part-time jobs.
The unemployment rate remained steady at 5.9 per cent, as expected, largely because the participation rate - which refers to the number of people either employed or actively looking for work - rose to an eight-month high of 64.8 per cent.
The better than expected figures pushed the Australian dollar back towards 76 US cents, and economists said they should please the RBA, which has recently described the labour market as soft.
"The latest figures would cheer up the Reserve Bank," CommSec chief economist Craig James said.
"Given the dour commentary accompanying the April interest rate decision, policymakers could do with some cheering up."
But the data will not change current forecasts of no foreseeable change in the RBA's cash rate, Mr James said.
JPMorgan economist Tom Kennedy expects the RBA to remain on alert, but "less alarmed" following Thursday's data.
"From a policy perspective, while RBA officials will take heart from the better tone of the March data, the fact that last month's pop in the jobless rate is now 'locked in' is likely to be a concern," he said.
Provided that the data isn't reversed, the RBA will be relieved that the loss of momentum in the labour market in recent months appears to have been temporary, St George Bank senior economist Janu Chan said.
"The case for further easing from the RBA has diminished but without a meaningful decline in the unemployment rate, talk of rate hikes is still premature," she said.
The biggest increase in employment was in Queensland, where 28,800 new jobs lowered the unemployment rate to 6.3 per cent,while NSW still has the lowest unemployment rate in the country, at 5.1 per cent.
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