How much lower will unemployment get?

The unemployment rate has fallen below the level consistent with stable price pressure in recent months. It is unlikely to fall much further, as the pool of attractive job candidates is drying up. With the working age population in decline, the labour force participation rate will therefore have to continue rising to maintain current employment levels. While structural reforms may induce more women to work, higher pay is probably also needed. All this suggests that wage growth will pick up further over the coming year.