Treasury Secretary Dr. Steven Kennedy discussed how Australia could maintain the momentum in the employment market with the appropriate policies that it gained during the pandemic recovery during a parliamentary committee meeting.
In his speech, Dr. Kennedy stressed that if the right policy choices are made, the economy could stay closer to full employment than it has been in decades. He stressed how this could have a life-changing effect, especially on Australians who are already struggling.
The job market has been strong, even though it has slowed down a bit, even though interest rates are going up. People are very excited about the The Australian Bureau of Statistics will soon release figures on the labor force. It should show that the economy is still strong, thanks in large part to better job ads, which are a key sign of desire for workers.
People are hopeful that the unemployment rate will stay low for longer than previously thought because Dr. Kennedy says there is “no evidence” of a wage price spiral. The fact that inflation expectations have not moved also makes the case for a permanently lower unemployment rate stronger.
It was also important to the Reserve Bank of Australia (RBA) to keep job gains, so it lowered interest rates more slowly than other central banks. According to the Australian Associated Press, Dr. Kennedy talked about how inflation is falling around the world, though at a slower rate than before. He focused on the change to services-led inflation, which usually takes longer to adjust to than good prices.
