Australia: Solid labour market not sparking wages growth - TDS

Research Team at TDS, suggests that there is no lasting market impact from Australia’s employment +7.9k (TD +20k, mkt +10k) via a +39k leap in full-time. 

Key Quotes

“The participation rate edged higher to 64.9% and so the unemployment rate edged higher to 5.8%, the latter was widely expected, and in-line with the 5.7-5.8% seen since Feb.  While the labour market is solid (annual employment growth -2%/yr since Feb) it is just not sparking wages growth as per prior cycles. Q2 CPI on 27th July is the key data release for the RBA and the market.”