Growth rate worries RBA
Australia's population grew by 318,500 in the year to September, our fastest growth rate since late in 1989. Much of the growth came from the net addition of almost 180,000 migrants, making the Reserve Bank's job of keeping a lid on demand pressures even harder. While the additional skilled workers have helped to ease constraints in the tight labour market, RBA governor Glenn Stevens has said that growth in demand has easily outpaced improvements in supply capacity over recent years, creating strain in markets for labour, housing, energy and goods, so increasing price pressures. The pace of construction in the housing industry has remained flat since 2002 while the population has grown by 1.2 million.
Source: The Australian Financial Review