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CBA Believe Underutilisation Is At Its Floor

AUSTRALIA

CBA note that “the labour market remains incredibly tight. We see the current level of underutilisation as the floor with unemployment modestly increasing over the forecast horizon. Whilst there has been a slowing of trend employment growth and tentative signs of the economy slowing, it will take some time for unemployment to move higher as it is a lagging indicator. In November, we expect that employment rose by a modest 15K and for the participation rate to be steady which is enough for the unemployment rate to remain at 3.4%.”

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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