RBA to raise rates for third consecutive month
Further confirming the strength of the local job market, Indeed found that overseas job seekers accounted for 8.3% of clicks on Australia-based jobs between January and May. It is up from 5.6% for the same period last year and is now above pre-pandemic levels.
May was a particularly strong month, with the level of interest abroad reaching 9.2%.
Between January and May, there was a 17.7% increase in the number of people overseas clicking on Australian job advertisements in agriculture and forestry, a 7.5% increase in electrical engineering and a 6.8% increase in ads for “beauty and wellness.”
Indeed Asia-Pacific economist Callam Pickering said the surge in foreign interest in the local job market can’t come too soon for the local economy.
“Australia’s unemployment rate is at its lowest level for nearly half a century, job vacancies are at an all-time high and recruitment has become increasingly difficult,” he said. he declares.
“Australia’s main challenge will be to attract highly skilled workers in a tight and global environment.
competitive labor market.
“Most of Australia’s staffing issues are far from unique in today’s world. Several countries are competing for the same pool of workers. Australia will need a stable source of foreigners to fill the talent shortages that have exploded during the recovery from the pandemic.
Separate research by ANZ showed a further rise in job vacancies across the country through June.
Ads rose 1.4% last month to 58.9% above their pre-pandemic level.
ANZ chief economist Catherine Birch said demand for workers still exceeded supply, suggesting the economy could absorb another rise in interest rates.
“The main conclusion for us is that the sheer volume of unmet labor demand suggests that slack will continue to decline and remain low even as demand growth is held back by higher inflation and rising interest rates,” she said.
“The very tight labor market is a key reason why we expect the Australian economy to be resilient in the face of these.”
AMP senior economist Diana Mousina said while there was a risk the Reserve Bank could raise rates by three-quarters of a percentage point on Tuesday, homebuyers should brace for an increase in interest. half a percentage point.
“We expect another 50 basis point hike from the RBA, taking the cash rate to 1.35% and reflecting the RBA’s concern that inflation is too high and could drive expectations inflation or the “psychology of inflation” entrenching itself at a permanently higher level causing inflation to fall short of the RBA’s 2-3% inflation target over the business cycle “, she said.
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