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Australia’s jobless rate is expected to remain low, while those seeking new work are likely to receive a boost to their pay packets.
Labour force figures for May, to be released on Thursday, are tipped to show the unemployment rate holds steady at 4.1 per cent.
Economists predict about 20,000 new jobs were added to the economy for the month of May, following a bumper increase of 89,000 in April.
The Australian Bureau of Statistics is expected to reveal that the jobs market is tightening, with the labour force participation rate predicted to stay steady at 67.1 per cent.
Salaries go up in the month of May, data shows
Listed salaries have increased by 3.6 per cent for the year to May, according to a report by online job site Seek.
The site’s advertised salary index showed growth in pay rates for new positions has remained steady over the past year.
But monthly growth in May was just 0.2 per cent, the smallest one-month increase since October.
Seek senior economist Blair Chapman said the increase in wages advertised was a welcome rise.
“The growth in average advertised salaries is currently outpacing living costs, which is good news for those switching employers as they are likely gaining a real wage increase,” he said.
“This means they can purchase more goods and services or save some of their additional earnings.”
‘Real wages are growing again’
Treasurer Jim Chalmers said reducing unemployment levels had also been accompanied by a decrease in inflation.
“No major advanced economy has combined unemployment in the low 4s with inflation under 2.5 and three years of continuous growth,” he said in an address at the National Press Club on Wednesday.
“We know this welcome progress in the national aggregate data doesn’t always translate into how people are feeling and faring in local communities. But real wages are growing again.”
Chalmers has flagged potential tax reform during his second term in the role, which will be examined at a productivity summit to be held in Canberra in August.
“This is all about testing the country’s reform appetite.
“I am prepared to do my bit, the government is prepared to do its bit, and what we’ll find out in the course of the next few months is whether everyone is prepared to do their bit as well.”
