The More jobs you create,the lower the unemployment rate goes,and as business compete for less talent the higher wages must go.Unfortunately,the the Australian economy just keeps on defying it.in August,34,700 more Australian were employed than in July,according to the latest seasonally adjusted jobs despite strong jobs growth the number of new jobs was twice what the consensus expect unemployment actually rose 0.1% .
In the moment while employment growth has been reasonably healthy over the past year,the demand for labour is being met with increased supply.This is working to keep a lid on wages Growth, BIS oxford Economics senior economics Sean Langcake said in a note issued.
Those extra jobs being offset by the fact the Australia's participation rate the percentage of people working or looking for work has never been higher.In other words,the number of available workers is so high that the number of new Jobs just pace can't keep.
Usually, the job growth we have experienced over the past two years will lead to a decline in the unemployment rate. "This is not the usual time," said Callam Pickering, chief economist at Asia Pacific.
The record participation rate combined with strong population growth has helped keep the unemployment figure up,as well as underemployment where work can find work but not enough of it."In recent months employment growth has been driven more by part-time roles,There is also a growing divergence between employment growth and growth in hours worked" Pickering said."That suggests that while the economy is till creating jobs it sin't necessarily creating the same quality of jobs as it was a year or two ago.
That has a big impact on the Australian economy as a whole, regardless of whether you have a job or not. Most importantly, high unemployment and underemployment make wage growth difficult.
The Reserve Bank of Australia (RBA) has repeatedly said it does not uncertain want to cut unemployment rates to 4.5 per cent, so that wage growth will follow.
Instead,it has now had to watch it tick up to 5.3 % in August,its to highest leave in 12 months,but precluding future wage growth.Without pay rises,Australian can't be expected to increase their spending and.without their dollars follow through it it's feared the economy will keep on slowing.
The consequence is that despite"strong employment growth"the RBA may be forced to cut interest rates ahead of schedule , according to the commonwealth of (CBA).
The August employment report lowered interest rates on the table at the October RBA council meeting," GBA Aird, CBA's senior economist, said in a note. with no reason to expect the unemployment rate to improve,Aird said it's probable that a rate cut will be handed down in October instead Of November as previously forecast.
Financial markets have changed based on job reports The market is set to face a 50 percent chance of a 0.25 percent reduction in October this morning. It now sets a 70 percent chance of a October rate reduction, which we now expect to be distributed.
In the moment while employment growth has been reasonably healthy over the past year,the demand for labour is being met with increased supply.This is working to keep a lid on wages Growth, BIS oxford Economics senior economics Sean Langcake said in a note issued.
Those extra jobs being offset by the fact the Australia's participation rate the percentage of people working or looking for work has never been higher.In other words,the number of available workers is so high that the number of new Jobs just pace can't keep.
Usually, the job growth we have experienced over the past two years will lead to a decline in the unemployment rate. "This is not the usual time," said Callam Pickering, chief economist at Asia Pacific.
The record participation rate combined with strong population growth has helped keep the unemployment figure up,as well as underemployment where work can find work but not enough of it."In recent months employment growth has been driven more by part-time roles,There is also a growing divergence between employment growth and growth in hours worked" Pickering said."That suggests that while the economy is till creating jobs it sin't necessarily creating the same quality of jobs as it was a year or two ago.
That has a big impact on the Australian economy as a whole, regardless of whether you have a job or not. Most importantly, high unemployment and underemployment make wage growth difficult.
The Reserve Bank of Australia (RBA) has repeatedly said it does not uncertain want to cut unemployment rates to 4.5 per cent, so that wage growth will follow.
Instead,it has now had to watch it tick up to 5.3 % in August,its to highest leave in 12 months,but precluding future wage growth.Without pay rises,Australian can't be expected to increase their spending and.without their dollars follow through it it's feared the economy will keep on slowing.
The consequence is that despite"strong employment growth"the RBA may be forced to cut interest rates ahead of schedule , according to the commonwealth of (CBA).
The August employment report lowered interest rates on the table at the October RBA council meeting," GBA Aird, CBA's senior economist, said in a note. with no reason to expect the unemployment rate to improve,Aird said it's probable that a rate cut will be handed down in October instead Of November as previously forecast.
Financial markets have changed based on job reports The market is set to face a 50 percent chance of a 0.25 percent reduction in October this morning. It now sets a 70 percent chance of a October rate reduction, which we now expect to be distributed.
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