Strength Of Labour Market Emphasised Again

"The strength of the Australian economy is evident in the labour market, with the unemployment rate falling further to 4 per cent in February. Underemployment is also at its lowest level in many years. Job vacancies and job ads are at high levels and point to continuing strong growth in employment over the months ahead. The RBA's central forecast is for the unemployment rate to fall to below 4 per cent this year and to remain below 4 per cent next year."

• "Wages growth has picked up, but, at the aggregate level, is only around the relatively low rates prevailing before the pandemic. There are, however, some areas where larger wage increases are occurring. Given the tightness of the labour market, a further pick-up in aggregate wages growth and broader measures of labour costs is in prospect. This pick-up is still expected to be only gradual, although there is uncertainty about the behaviour of labour costs at historically low levels of unemployment."