ANZ: Australian labour market will remain very tight, see solid jobs growth in February

Earlier posts are here on the Australian jobs report for January:

Australia January Employment change -11.5K (expected +20K) Unemployment rate 3.7% (3.5%)

AUD/USD lower after the January employment report showed jobs down, unemployment rate up

ANZ:

  • We continue to expect the labour market will remain very tight through 2023.
  • Labour demand remains very strong. There were 444,200 job vacancies nationally in November (around double pre-pandemic) and almost 90% of firms couldn’t hire enough workers in Q4 according to NAB (Figure below).
  • Strong seasonal factors look to have contributed to the weakness in January.
  • We expect a return to solid employment growth in February.
  • We do not expect unemployment to rise rapidly.
Australia jobs 16 February 2023

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