Why the latest jobs figures won’t ease the RBA’s concerns

While inflation in Australia is expected to continue falling towards the target band and economic growth has slowed materially, a more balanced labour market with less pressure on wages growth will be needed for the RBA to consider lowering interest rates, writes Michael Malakellis.

The seasonally adjusted unemployment rate increased to 3.8 percent in March from 3.7 percent in February, slightly missing the consensus expectations of 3.9 percent, with employment falling by 7,000 people and unemployment increasing by 21,000 people. The employment outcome in March followed a larger-than-usual flow of people entering employment in February and smaller-than-usual flows in December and January. The flows have returned to a more usual pattern in March. Looking over the past ...

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Authors: Michael Malakellis

Published Date: 19 April 2024