The strong uptick in Australia's unemployment rate in June may be overstating the actual degree of slack in the labour market. After all, the underutilisation rate remains historically low and businesses are continuing to report significant labour shortages. Even so, our analysis finds that the labour market is unlikely to reignite inflationary pressures anytime soon. Accordingly, we continue to believe that the RBA will cut rates a bit further than most are predicting.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services