SYDNEY, April 14 Reuters Australia39;s unemployment rate held at a 13year low in March as jobs growth slowed after months of strong gains, though recordhigh vacancies suggest it is only a matter of time before unemployment falls further.

Figures from the Australian Bureau of Statistics on Thursday showed a jobless rate of 4.0, when analysts had looked for a drop to 3.9 and the lowest reading since 1974.

That will be a disappointment to Prime Minister Scott Morrison who was hoping a sub4 number would bolster his economic credentials amid a close election campaign.

It might also ease pressure on the Reserve Bank of Australia RBA to lift interest rates next month, though markets are still wagering the first hike in a decade will come in June.

There is no doubt the labour market remains very tight with employment rising by another 17,900 in March, and a stellar 338,000 in the past 12 months.

Underemployment hit the lowest since 2008 and participation rates held near record highs at 66.4. Demand for labour is also red hot with vacancies at an alltime peak of 423,500, 86 higher than their prepandemic levels.

The RBA has already dropped a pledge to be patient on policy amid signs the tightening labour market was finally pushing wages higher, and adding to inflationary pressure.

More businesses are planning to pass on rising input and labour costs to customers, a major change from recent years when fierce competition kept prices restrained. read more

The consumer price…