Sarah Hunter, Assistant Governor (Economic) at the Reserve Bank of Australia
Labour
market still tight relative to full employment
Labour
market has moved towards better balance since late 2022
Easing
in labour market similar to past mild downturns
Some
slowing in labour demand to occur via drop in average hours
Expect
employment to continue to rise but at slower pace than population
Space
for vacancies to fall further without sharp rise in unemployment
Surprised
by strength in participation rate, including vs peer economies
Outlook
is highly uncertain, our forecasts likely to be wrong in some way
Hunter also noted
high rates are slowing demand in what should a mild economic downturnthere were signs that the easing in the labour
market
had started to flow through to wage growth, which was
likely
past its peak and set to slow further
Full text is here:
Understanding the Journey to Full Employment
Hunt
—
Reserve Bank of Australia cash rate vs. inflation rate:
This article was written by Eamonn Sheridan at www.forexlive.com.
