Labour market strength looks set to run a bit further in Australia

Access the research report to learn more about the key points outlined below:

• The Australian labour market has outperformed expectations over the past two years. From a very tight starting point, employment has increased by 6.1%, and while the unemployment rate has risen, it remains low at 4.1%.

• Much of the strength in the labour market is attributable to the non-market sector, and the slowdown in private sector activity will inevitably lead to a slackening in conditions. But looking at a range of labour market indicators, a marked deterioration does not appear to be imminent.

• Measures of under utilisation, hours worked, and youth unemployment remain firm – these are typically the first signs of a reduction in labour demand. Moreover, although job advertisements and vacancies continue to trend lower, they remain at a level consistent with a very tight labour market.