There are signs the job market is cracking under the pressure of the Reserve Bank’s aggressive interest rate hikes, with unemployment lifting to 4.1 per cent in April and wages growth starting to ease.
“These new numbers show we are still creating new jobs, even as the unemployment rate has ticked up and the labour market is softening,” he said. Moody’s Analytics economist Harry Murphy Cruise said cracks were beginning to show in the jobs market. Deutsche Bank’s chief economist for Australia, Phil O’Donaghoe, said the job report was a better indicator about the state of the economy than this week’s budget.“If that picture is sustained over coming months, we think the upshot for the RBA’s near-term policy deliberations will be more important than anything in the federal budget.”
“So, while the labour market has certainly held up a lot better than expected over the past year, it is still weakening, which is consistent with the Reserve Bank of Australia keeping interest rates unchanged,” Mousina said.
Source: News Formal (newsformal.com)
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