Australian labour market still set to turn

Leading indicators suggest that employment growth in Australia is unlikely to slow meaningfully in the near term. However, even if job creation remains resilient, it is unlikely to keep pace with the ongoing surge in the labour force. Accordingly, we still think the unemployment rate will climb higher in the months ahead. Moreover, with job mobility on the decline and pay hikes for workers covered by collective agreements set to moderate, wage pressures should soon come off the boil too.