Australia's Job Market Slows Down as Unemployment Rate Rises

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Australia,Job Market,Economists

Leading economists in Australia suggest that the job market has turned the corner due to slowing business activity and an increase in the unemployment rate. The Business Council and the treasurer have different views on the causes of the slowdown. ANZ senior economist Catherine Birch believes that the labor market's loosening rate will impact the Reserve Bank of Australia's decisions on interest rates. Experts predict that finding a job will become more challenging in the next six months as the economy slows down. Official data shows that the unemployment rate has reached a two-year high of 4.1 percent, with 22,000 jobs lost in January.

Australia's job market has turned the corner, according to leading economists, who point to slowing business activity in addition to an uptick in the unemployment rate. The Business Council says business conditions must be addressed, while the treasurer says the slowdown is an inevitable consequence of rising rates, persistent inflation and global uncertainty.

ANZ senior economist Catherine Birch says the rate at which the labour market loosens will influence the RBA's rates decisions throughout the year. Economists say the employment market has turned and it's going to be harder to land a job during the next six months as the economy slows. "I absolutely think the jobs market is slowing right down," CreditorWatch chief economist Anneke Thompson told ABC's PM program. Official data this week showed the unemployment rate bouncing up to a two-year high of 4.1 per cent, as an estimated 22,000 jobs were shed in January. CreditorWatch monitors business activity month to month by looking at the total value of all invoices made by firm

 

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