Strong jobs growth shows rapid economic recovery
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Australia’s robust labor market recovery signals that it is fast recovering after the country lifted coronavirus restraints, Treasurer Josh Frydenberg announced Friday.
According to data released by the Australian Bureau of Statistics, November saw a new record of 366,100 job additions, surpassing all market expectations for a rebound of 200,000.
“Yesterday’s job numbers is better than what the Treasury was expecting, what the Reserve Bank had been forecasting,” Frydenberg told CNBC’s “Squawk Box Asia,” adding the labor market has been “very strong in its comeback.”
From 5.2% in October to 4.6% in November, the unemployment rate was well below forecasts at 5.0%.
Frydenberg stressed that recovery is broad-based, with many sectors seeing job growth.
Manufacturing is generating a lot of jobs. There have been reopenings of hospitals and reopenings of accommodation services. Health and other services are in great demand. Frydenberg noted that the country has a strong construction sector and mining industry, as well agriculture.
It’s broad-based recovery. He said that it was something that they will continue to strive to preserve.”
The following is the Thursday schedule Reserve Bank of Australia Governor Philip LoweAccording to him, the labor market is expected to get tighter over the next few years. According to him, the RBA’s central scenario is that the rate of unemployment will reach 4.25 percent by 2022, and then 4% in 2023.
“If we could achieve this, these would be good outcomes – Australia has not experienced a sustained period of unemployment at levels this low since the early 1970s,” he said.
Economic outlook and covid risk
Lowe stated that the Omicron Infection is a risk to human health and can be difficult to predict how it will evolve.
He said, “But we expect the positive momentum of the economy to continue through the summer underpinned by opening up the economy.”
The outbreak of the delta variant in late June forced some of Australia’s biggest cities, such as Sydney and Melbourne, to enter months-long lockdowns. But the restrictions have since been lifted following an increase in vaccinations.
CNBC was also informed by Frydenberg that international travel is essential for sustaining an economic recovery.
He noted that there was a 2-week pause for skilled migrants as well as international students returning to their homelands because of the omicron variation. The omicron variant, while potentially deadly, is not as severe as previous ones.
Frydenberg explained, “So that’s why we removed the pause. Now we welcome those international students or skilled migrants back in our country. And that’s good.”
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