The December quarter labour market surveys were strong if a touch softer than expected. With higher interest rates now weighing on the economy, economists at Westpac think the jobs market has reached a turning point.

Turning point?

“The unemployment rate rose to 3.4%, slightly higher than forecast.”

“While the jobs market is coming from a very strong starting point, there is good reason to expect a deterioration in the years ahead. In contrast, wage inflation remains on the rise, and the turning point is likely to come later.” 

“We continue to expect a 0.5% increase in the Official Cash Rate later this month.”