Sarah Hunter, Assistant Governor of the Reserve Bank of Australia, indicated that the labor market remains tighter than the level associated with full employment.
"We anticipate that the demand for labor will grow at a slower rate compared to the supply of labor over the forthcoming quarters, thereby gradually bringing the labor market into a more balanced state," Hunter remarked during an economic forum held in Sydney.
Hunter also mentioned that there is room for job vacancies to decrease further without causing a sharp rise in the unemployment rate.
The bank projects that employment will continue to increase, albeit at a slower pace than that of population growth.
According to Hunter, measures of underutilization, including the unemployment rate, are expected to rise gradually before stabilizing as GDP growth aligns more closely with the economy's inherent trend growth rate.
