CommBank Global Economic & Markets Update podcast

A bumper labour market report

June 17, 2021

The May labour market report was very strong on all accounts. Employment rose by 115k, the unemployment rate fell to 5.1% and the participation rate lifted. Underemployment fell further and suggests the labour market is tightening quickly. In this podcast Gareth Aird, Head of Australian Economics and Belinda Allen, Senior Economist discuss the labour market report and the outlook for employment. Gareth also talks about a newer measure of the labour market which includes all workers in the Australian economy, including temporary workers, which indicates employment is not yet back to pre pandemic levels. This is due to the loss of foreign workers from our labour supply. The evidence suggests the labour market is tightening and wages pressure should lift.  This differs from recent RBA commentary that wages and inflation pressure will remain muted for some time.

 

------ DISCLAIMER ------

Before listening to this report, you are advised to read the full Global Markets Research disclaimers which can be found at www.commbankresearch.com.au. Information in this podcast is of a general nature only. It does not take into account your objectives, financial situation or needs and does not constitute personal financial advice. This report provides general market-related information, and is not intended to be an investment research report. The information contained in this report is approved and distributed by Global Markets Research, a business division of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (“the Bank”). The information is solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or other financial instruments. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Where ‘CBA data’ is cited, this refers to the Bank proprietary data that is sourced from the Bank’s internal systems and may include, but not be limited to, credit card transaction data, merchant facility transaction data and applications for credit. As the statistics take into account only the Bank’s data it may not reflect all trends in the market. All customer data used, or represented, in this report is anonymised and aggregated before analysis and is used, and disclosed, in accordance with the Group’s Privacy Policy Statement. The Bank believes that the information in this presentation is correct and any opinions, conclusions or recommendations are reasonably held based on the information available at the time of its compilation but no representation or warranty, either expressed or implied, is made or provided as to accuracy, reliability or completeness of any statement made.

Podbean App

Play this podcast on Podbean App