Australia's unemployment rate has pushed higher for the second consecutive month, putting pressure on the Reserve Bank's stance that the jobs market needs to improve for the economy to meet its goals.

Key points: The seasonally adjusted jobless rate is now 5.2pc having bottomed out at 4.9pc in February

The seasonally adjusted jobless rate is now 5.2pc having bottomed out at 4.9pc in February More than 28,000 new jobs were created in April despite a net loss of 6,300 fulltime positions

More than 28,000 new jobs were created in April despite a net loss of 6,300 fulltime positions Part of the rise was due to more people looking for work, but labour market 'slackness' will keep downward pressure on wages

In seasonally adjusted terms, the unemployment rate ticked up to 5.2 per cent in April, from an upwardly revised 5.1 per cent the month before.

It was 4.9 per cent in February.

In the more stable trend terms, unemployment was steady at 5.1 per cent.

The increase was in line with softer leading indicators reported in job ads and business surveys, but higher than the consensus forecast and considerably higher than the RBA's hopes for an improved outlook.

The weaker than expected number briefly drove the Australian dollar below 69 US cents — its lowest level in more than three years — on increased anticipation of a rate cut.

However, the RBA could point to more people looking for work as a positive in the figures.

The participation rate in the workforce hit a fresh record high of 65.8 per cent in April.

Further cooling in the jobs market is not surprising, given insipid wages growth. Wages grew by just 0.6 per cent in the first three months of the year, or 2.3 per cent over the previous 12 months.

While jobless queues lengthened — there are now 703,000 Australians out of work — job creation continued at a solid rate.

In seasonally adjusted terms, 28,400 new jobs were created — with 34,700 new part-time roles outweighing the loss of 6,300 full-time positions.

Enough for a rate cut?

The data was not good news for workers looking for a pay rise.

The key measure of slackness in the labour market — the underutilisation rate, or the sum of the unemployed and those in search of more work — jumped from 13.3 per cent to 13.7 per cent.

NAB's immediate response was that the higher jobless rate increased the odds of a rate cut next month.

"In recent statements, the RBA has said that a lack of improvement in the labour market would warrant a cut, such that today's deterioration is likely to be of great concern to them; we now place a 50/50 chance of a cut in June," NAB economist Kaixin Owyong noted.

IFM economist Alex Joiner said the RBA would probably have no problem with the result.

"It is whether this simply comes down to spare capacity and a rising participation rate, while good for the broader economy, is viewed as bad for encouraging wages growth," Dr Joiner said.

"Enough for a June cut? [It] could hang it on tepid wages and this read on unemployment offsetting the perception they skipped May due the proximity to the election."

Unemployment deteriorating rapidly

RBC's Robert Thompson argued a faster than expected deterioration in the labour market, and the likelihood the unemployment rate has already bottomed, skews the risk back again to an earlier cut.

"Given the suite of lead employment/vacancy indicators mostly suggesting further softening in labour market conditions ahead, it is difficult to imagine that unemployment will get back below the 5 per cent mark," Mr Thompson said.

"They can't sit idly by if the trend has truly turned. We're not sure exactly sure where the pain threshold is, but imagine the threat of 5.25 per cent or above in trend terms would have to force the bank's hand."

CBA economist Belinda Allen said there was something for both optimists and pessimists in the figures.

"What is clear is that there is spare capacity as the trend higher in the underemployment rate and unemployment rate shows," Ms Allen said.

"The RBA could cut rates to try and close that gap and push inflation back towards target. But this release tells us little more than the story of recent months and the RBA has left rates on hold in that environment."

Two-speed economy

Once again, the figures highlighted the two-speed nature of the Australian economy, with New South Wales and Victoria enjoying significantly stronger jobs markets.

Unemployment rose in every state except Queensland, where the jobless rates edged back under 6 per cent, although it was helped by a slide in people looking for work there.

"Employment growth continued in New South Wales, but fell in Victoria. These have been the strongest two states in terms of employment, but also the most impacted by the downturn in the housing market," Ms Allen said.