Australia's unemployment rate has unexpectedly fallen back to 5.7 per cent, signalling some recovery in the job market and likely providing relief for the central bank.
Economists had expected the jobless rate to remain steady at 5.9 per cent in April but the number of people with jobs rose by a better-than-expected 37,400 in the month, following on from a rise of 60,900 in March.
The surprise figures helped push the Australian dollar to a high of 74.66 US cents, its highest level in two weeks. It had traded at 74.15 US cents just prior to their release.
While the overall jobs market is running stronger, most of the gains in April were driven by part-time jobs, which rose by 49,000 for the month. Full-time jobs fell by 11,600 in the same period, data showed.
"April's entire job gains were part-time. Full-time employment losses meant that employers effectively downgraded some positions, which was reflected in a 0.3 per cent decline in hours worked," Citi economists said.
"This and the persistence of high underemployment suggest that wages growth will remain weak in the short to medium term."
On Wednesday, the latest Australian Bureau of Statistics Wage Price Index showed wages growth in Australia came in at a weak 0.5 per cent for the March quarter.
The Reserve Bank of Australia has repeatedly expressed concerns about the softness in the labour market, saying the combination of high unemployment and slow growth in wages, alongside high household debt levels, is likely to weigh on spending.
It indicated this week it would look at both the housing market and employment growth as guides to the outlook for interest rates, which have been on hold since August last year.
"Although there are still questions about the reliability of this survey, these stronger prints are bringing the official numbers more in line with other labour market indicators, which have been pointing to a tightening labour market," HSBC chief economist Paul Bloxham said.
He expects jobs growth to run at an annual pace of around 2 to 2.5 per cent over the rest of the year and the unemployment rate to edge lower from the second half of 2017, lifting wages growth.
The biggest increase in employment in April was in Victoria, with 18,600 new jobs, although its unemployment rate there remained steady at 6.1 per cent.
NSW still has the lowest unemployment rate in the country, at 4.7 per cent.
The overall participation rate, which refers to the number of people either employed or actively looking for work, was steady at 64.8 per cent.
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