Unemployment pops up to 4.1 in April, above forecasts
Employment rises 38,500, but lags growth in workforce
Markets price out rate hike, see chance of cut this year

SYDNEY, May 16 Reuters Australian employment rose by more than expected in April, data showed on Thursday, but the jobless rate still climbed to a threemonth top as the growth in workforce outpaced job creation.

The jump in unemployment was seen as erasing any chance of a further rate hike from the Reserve Bank of Australia RBA, a big swing from early in the month when the probability had been as high as 40.

Markets now imply around a 54 chance of a cut in the 4.35 cash rate as early as December, cheering investors who were still celebrating a slowdown in U.S inflation and a revival of hopes for an easing in policy there.

Data from the Australian Bureau of Statistics showed net employment rose 38,500 in April from March, topping forecasts for a bounce of 23,700. All the gains were in parttime work, with fulltime employment dipping 6,100.

The jobless rate rose to 4.1, from an upwardly revised 3.9, and above market forecast. The participation rate ticked up to 66.7, while hours worked were flat.

A 30,000 people increase in unemployment reflected more people without jobs available and looking for work, and also more people than usual indicating that they had a job that they were waiting to start in, said Bjorn Jarvis, ABS head of labour statistics.

That suggested employment could rise again in May as…