SYDNEY, June 13 Reuters Australian employment outpaced expectations in May as firms took on more fulltime workers, while the jobless rate dipped in a sign the labour market remains resilient even as the economy slowed to a standstill.

The report is unlikely to move the needle much on rate cuts, with markets expecting the easing cycle to start only in the second quarter of next year. The Australian dollar perked up to an intraday high of 0.6665 but soon settled where it was before at 0.6651.

Net employment rose 39,700 in May from April, data from the Australian Bureau of Statistics showed on Thursday. Market forecasts had been for a gain of 30,000. Fulltime employment jumped 41,700 following a couple of soft months.

The jobless rate eased back to 4.0, from 4.1, in line with estimates, as more people started or returned to their jobs after a break in April, the ABS noted.

The participation rate held at an historically high 66.8, while hours worked dipped 0.5 in the month due to a large number of workers taking time off because they were sick.

Financial markets have given up much hope of rate cuts in Australia this year, so today39;s decent labour report won39;t have caused too much of a stir, said Robert Carnell, regional head of research, AsiaPacific, at ING.

In short, having hit a softpatch at the end of 2023, the Australian labour market is currently ticking along at a modest pace. It wouldn39;t take a lot to tip it into a weaker trajectory, but equally, there is…