Core Insights - The Australian labor market is undergoing a significant transition from an unsustainable hiring boom that drove unemployment rates below historical norms to a more balanced trajectory [1] - Employment growth has slowed for the first time in a year, aligning with population growth, indicating a gradual easing of the previously strong labor market [1] - High labor force participation is expanding economic capacity, helping to alleviate unit labor cost pressures and supporting inflation cooling without a sudden downturn in the job market [1] - The Reserve Bank of Australia has room to act cautiously by monitoring high-frequency indicators like job advertisements to ensure that the pace of easing does not outstrip productivity and supply-side capacity improvements [1]