Unemployment expected to push up to near 11-year high, economists warn
Major bank economists expect the unemployment rate to inch up to 5.4 or 5.5 percent for the three months ended June.
Economists are warning that unemployment is on track to reach a level not seen in nearly a decade, with the rate expected to rise to 5.4 or 5.5 percent for the quarter ending June. Westpac's Michael Gordon noted that employment growth has been slow, with only a few thousand jobs added during the period. ANZ's Miles Workman added that businesses have been cautious about hiring due to the oil price shock and global uncertainty.
He suggested that firms are reducing staff hours instead of laying off workers. The labor market is seen as a lagging indicator, meaning it may not fully reflect the current state of the economy. Despite the challenges, there is some optimism that the economy could generate more momentum in the coming months, potentially leading to a recovery in the labor market by the end of 2027.
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