An increasing number of analysts at major financial institutions are predicting official interest rate cuts in anticipation of a significant jump in the jobless rate, as construction workers get laid off.
Australia's unemployment rate is on the cusp of a significant increase, according to warnings from three major financial institutions.These analysts tip the unemployment rate will rise to 5.5 per centThat is in contrast to last week's parliamentary testimony from Reserve Bank governor Philip Lowe, in which he said employment would continue"growing strongly".
But construction activity has fallen as house prices in Sydney and Melbourne have recorded double-digit declines.There is also evidence that property investors, home owners, and those in and around the construction industry have become more thrifty, which is producing significantly less foot traffic in shops and malls around the country."This is probably even more so, in terms of construction, in retailing," Dr Oliver warned.
"I think the key point here is that the very strong jobs growth we've seen in the Australian economy over the last two years is likely to slow down, and that's already starting to become evident in weakness in job vacancies or job advertisements."Unemployment could rise back to 5.5pc
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