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Skill Shortages Likely To Keep Pressure On RBA

AUSTRALIA

The National Skills Commission (NSC) has published its skills priority list. The Australian reports that the number of occupations considered to be in shortage has risen to 286 this year from 153 a year ago. This is 31% of all occupations (19% 2021).

  • Continued labour shortages suggest that while the RBA may have slowed the pace of rate hikes this month, the tightening cycle is not yet over and may now take longer.
  • The NSC report shows that shortages in Australia’s labour market continue to be a problem in a wide range of areas (health, mining, transport, care, education, IT, construction).
  • Employers apparently prefer to re-advertise, restructure or change job descriptions rather than increase pay to attract staff, according to the Australian. Thus partially explaining the moderate pick up in wage growth so far seen in Australia, and consistent with SEEK advertised salaries not accelerating and continuing to rise in line with the 2022 average of 0.3%m/m.
Vacancies to unemployment (%) remain very high

Source: MNI - Market News, Refinitiv, ABS

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