The unemployment rate dipped to 5.4 per cent in April from 5.7 per cent in March, as companies grappling with the recession held on to workers in anticipation of a rise in demand. Economists had expected a 0.2 per cent increase that would have would have pushed the rate to 5.9 per cent.

Today's result is the strongest since last July, before the global financial crisis accelerated.

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The better-than-expected reading on the jobs market comes the same week strong retail sales and trade surplus figures were released, raising hopes for an economic revival.

Full-time jobs surged by 49,100, easily eclipsing the 21,800 jobs lost during the month. The net gain was 27,300 jobs.

The Australian dollar jumped on the news, gaining half a US cent in recent trade and the sharemarket also extended its advance.

Despite the healthy take on the labour market, unofficial forecasts put the unemployment rate at 9 per cent by the end of 2010 once the full effect of the downturn filters through the economy.

''Defying expectations the Aussie economy added jobs in April and the unemployment rate went down,'' said Moody's economy Economists Matt Robinson.

''It's a damn good result.''

''This is going to leave a lot of people gobsmacked.''

Mr Robinson said it was possible that employers with long memories of a tight labour market only a year ago had been ''trying desperately hard not to lay off staff because those quality people will be the most productive in an upturn.''

''You've got to take your hats off to policymakers both government and the central bank that have taken aggressive actions that look as if they're working,'' he said.

Since the acceleration of the global financial crisis late last year, the Federal Government has announced $78 billion stimulus packages and spending aimed at keeping people spending and the economy cushioned from a hard landing.