Unemployment rate puts pressure on wages
Unemployment has fallen 0.2 of a percentage point to 4.3 per cent after more than 20,000 jobs were created in December. The increase was made up of 13,800 part-time jobs and 6,300 full-time jobs, driving the unemployment rate close to its lowest point in 33 years. Over the year employment grew by 2.5 per cent or 260,000 jobs. Despite the tight labour supply wages only grew by 4.5 per cent over the year, but there is a risk that this could escalate if conditions do not improve. The market currently has the odds of a rate rise in February at 39 per cent.
By The Australian Financial Review