SYDNEY (Reuters – Australian job adverts fell in April after reaching multi-year highs. However, there is still strong demand for labor that will drive unemployment down to its lowest levels since the 1970s.

The total number of job advertisements in Australia and New Zealand was 0.5% lower than March’s according to Monday’s data from Australia and New Zealand Banking Group Ltd. Ads rose 26.3% from March last year to 242,536. They were also more than 57% higher in April than February 2020.

David Plank from ANZ, the head of Australian economics said that “we expect strong labour demand will lead to solid employment gains over the coming months.” We see the unemployment rate falling well below 4% by the end of the second quarter 2022 which will help to sustain the trend toward greater wages growth.

Surprise! The unemployment rate dropped sharply to 4.0% in January, and another drop is predicted for April.

The economy is at almost full employment, and the inflation rate high. At its May or June policy meeting, the Reserve Bank of Australia (RBA), it will likely raise interest rates from 0.1% to record levels.

On Tuesday, the bank’s board will meet and there is speculation that they will raise rates by 0.25% to signal the beginning of an aggressive tightening cycle. Investors believe rates could reach 2.5% before the end of this year.