Jobless rate falls, participation rate hits record high
Markets split on July interest rate hike prospect
RBA chief willing to sacrifice jobs to curb inflation

SYDNEY, June 15 Reuters Australian employment blew past expectations in May, while the jobless rate edged lower and participation rate climbed to a record high, an extraordinarily strong report that adds pressure on the central bank to raise interest rates further.

Figures from the Australian Bureau of Statistics ABS on Thursday showed net employment rose by 75,900 in May from April, when they fell by a revised 4,000, a result likely due to the Easter holiday. Market forecasts had been for a rise of 15,000 jobs.

The jobless rate edged back to near 50year lows at 3.6, when analysts had expected a steady 3.7, and the participation rate climbed to a record high of 66.9 from 66.7, thanks to a greater share of women entering the labour force.

Fulltime employment rebounded 61,700 from April when it fell by a revised 28,600.

The broad strength of the report added to the case that the Reserve Bank of Australia RBA has more work to do to tame inflation, even after tightening by 400 basis points to an 11year high of 4.1, including a surprise rise earlier this month.

Markets moved to price in an almost split chance of another quarterpoint hike in July, with rates almost certain to hit 4.6 by November.

The bond yield curve, which was already inverted to signal risks of a recession, inverted further after the jobs…