Summarised comments from Westpac's assessment of the Australian employment data

(data is here)

In brief:

  • The employment report surprised to the upside
  • For a second consecutive month
  • We interpret the results as volatility in an improving trend
  • The results bring the employment numbers more into line with the fundamentals and forward indicators ... which points to further solid gains in the months ahead.
  • Considerable labour market slack persists, which will continue to weigh on wage and consumer inflation
  • The positive is that a strengthening of jobs growth will provide some support to household incomes and in turn consumer spending
  • Looking further ahead, in 2018, we expect the labour market to cool - as home building activity turns down and as China slows and commodity prices retreat further