Australia is experiencing a unique economic situation characterized by historically low unemployment, slowing wage growth, and the Reserve Bank cutting interest rates. Despite these positive indicators, real wages, especially when factoring in mortgage repayments, remain lower than pre-pandemic levels.
‘Right now, we are experiencing something good in the economy that no one under 55 years of age has ever known.’‘Right now, we are experiencing something good in the economy that no one under 55 years of age has ever known.’There is a long path back to recovering our lost living standards, but now we can have some hope that the worst is behind us Wages growth is slowing; unemployment is at historic lows and the Reserve Bank is also cutting rates. Welcome to the weird economy of 2025.
It is also worth realising that, right now, we are experiencing something good in the economy that no one under 55 years of age has ever known.In December the unemployment rate was 4.0%. It’s easy to forget given unemployment has now been 4.0% or lower for 31 out of the past 39 months that this is unusual. But in the 564 months before February 2022, it had happened just twice.In December, inflation was 2.4%, which is in the lower half of the RBA’s target range of 2% to 3.%.
AUSTRALIA ECONOMY UNEMPLOYMENT WAGES INTEREST RATES INFLATION
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