Preview: the labour market is tight, but times are changing

The unemployment rate is tipped to rise. (Image: Getty)

Wed, 01 Feb 2023

This week’s jobs data will show the labour market was tight in the fourth quarter, but most economists now expect the central bank to take its foot off the hiking accelerator as a recession looms. The official cash rate has gone from 0.25% to 4.25% in 18 months and up until recently the central bank had been expected to lift rates another 75 bps to 5% in February to curb inflation. What changed? There were tentative signs that annual inflation is leveling off after it was 7.2% in the December quarter, unchanged f...

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