Part 7/9:
The Australian labor market's resilience has been largely driven by growth in non-market sectors like public administration and health, while private sector employment remains relatively weak. Miller anticipates that government spending will soon taper off, possibly leading to a decline in employment growth in these sectors.
If inflation continues to hover near the middle of the target range, the RBA could pursue a more aggressive rate-cutting strategy. Such a move would likely boost the housing market, stimulate construction, and rekindle activity in parts of the economy that have been dormant for years. This approach could help offset any employment slowdowns and promote economic stability.