Navigating Australia’s Labour Market

Conditions in the labour market stabilised somewhat in July, with the unemployment rate ticking back down to 4.2%. Employment growth was modest, but a steady improvement on the last two prints.

The labour market has been in a tight position for a protracted period, defying a broader slowdown in economic growth. But the labour market now appears to be in the early stages of a downturn. Today’s data are reassuring in that they suggest conditions are not deteriorating quickly. Nevertheless, weak economic momentum and global uncertainty will be strong headwinds for the labour market to overcome through the rest of the year.

Chart 1: The unemployment rate ticked lower in July