The September unemployment rate was steady on a seasonally adjusted basis, at 3.5 per cent. There was very little movement in both employed people and the number of unemployed people, which rose slightly by 8,800, or 1.8 per cent.

The labour force data reflects patterns we see in job vacancy data, with the latest quarterly data showing a slight decrease in the number of jobs available over the August quarter. Given this is a leading indicator, and collected quarterly, we expect that employment in Australia is now reverting to more normal growth trends. Job vacancies are likely to also continue to ease, especially as seasonal job requirements in hospitality and retail slow after Christmas and the summer holiday period.   

Coupled with CreditorWatch’s B2B Trade receivables data, which shows trade amongst small businesses is slowly normalising, it appears we are now moving away from the extreme peaks and troughs of the lockdown and post-lockdown era. This should give the RBA a degree of comfort, as consumers and borrowers should also start to respond to interest rate rises more normally. That is, reduce spending and alter their buying patterns.