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Aus labour market slows as the economy rebalances

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The unemployment rate unexpectedly rose back to its cyclical high of 6 per cent in June and employment growth slowed this quarter. Labour market conditions have softened in recent months following a strong start to the year.

ANZ expects employment growth to remain relatively moderate in the second half of the year at less than 15,000 per month. The jobless rate should remain within earshot of 6 per cent for much of the next year or so.

Job shedding related to waning resources investment will be a headwind, as will ongoing cost cutting in some industries and expectations of moderate non-mining activity.

The construction industry however, is likely to continue to be a bright spot for job generation.

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

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