Australia\u2019s job market might be showing signs of slowing down, but it\u2019s not falling off a cliff just yet. According to the Reserve Bank of Australia (RBA), the labour market is likely to remain tight over the next few years, despite higher unemployment rates and a gradual cooling in wage growth. As the RBA works to bring inflation under control without triggering a sharp rise in joblessness, the outlook for workers and employers is a bit of a mixed bag.<\/p>\n\n\n\n
The RBA has projected that while unemployment will increase slightly, it will still remain relatively low compared to historical standards. Currently sitting at 4.2%, the unemployment rate is expected to creep up to 4.6% by mid-2028. This means that while the job market will experience some softness, the RBA is betting on a gradual shift rather than a sudden shock to the system. For workers, that likely means continued job security but potentially more competition as hiring slows down.<\/p>\n\n\n\n
Meanwhile, wage growth, which has been on a steady rise, is expected to cool off in the coming years. The Wage Price Index (WPI)<\/a> showed an annual growth of 3.4% in the December quarter, but the RBA expects that to ease to around 3% by 2028. This is a sign that wage pressures are starting to subside, likely due to slower economic growth, as the central bank continues to raise interest rates to tame inflation. In other words, workers can expect more modest pay increases going forward, even though the job market is still fairly strong.<\/p>\n\n\n\n