Jobs data in focus as economic outlook brightens

Labor Market Overview - Australia's unemployment rate is expected to remain low at 4.2% according to ANZ Bank, with the rate holding below 4.3% since late 2021, except for a brief spike in June 2023 [1][2] - Economists predict job creation in August to be similar to July's 24,500, with ANZ forecasting a stronger addition of 32,500 jobs, indicating robust labor demand [3] Wage Growth and Economic Impact - The tight labor market has resulted in workers receiving a larger share of economic income, with real wage growth at a five-year high, contributing to improved living standards and consumption [4][5] - Wage increases from the Fair Work Commission have added approximately $28 billion in income to workers over the past year [6] - The share of total income going to wages has risen to 54% from below 50% since the Labour government took office, which is viewed positively for working individuals [8] Economic Conditions and Consumer Demand - Weak consumer demand has limited businesses' ability to pass on higher costs, creating a low-inflation environment that is favorable from a central bank perspective [9] - Productivity growth is improving, and underlying labor costs for businesses are moderating, suggesting a balanced economic outlook [8]