Australia: Raise labour supply

Output growth, which could reach 4.25% in 2007, is expected to slow gradually to 3.5% in 2008 and 3% in 2009, a pace close to the potential growth rate. This slowdown, which will be accompanied by a further tightening of monetary policy to keep inflation in line with the Reserve Bank’s inflation target, should ease strains in the labour market.
Prudent budget management, while allowing the automatic stabilisers to operate, would also help moderate the pressures on capacity that may be heightened by the announced tax cuts. Given that demand could remain brisk over the medium term, it is important to continue efforts to stimulate labour supply, especially with respect to skilled labour, and preserve job market flexibility.

©OECD Observer No. 264/265, December/January 2008

OECD Economic Outlook No. 82, December 2007
All OECD Observer articles on Australia

Economic data

GDP growth: +0.6% Q1 2019 year-on-year
Consumer price inflation: 2.3% May 2019 annual
Trade: +0.4% exp, -1.2% imp, Q1 2019
Unemployment: 5.2% July 2019
Last update: 9 September 2019

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