The forward-looking indicators suggest further growth in jobs over the months ahead with vacancies at a very high level. Our central forecast is for the unemployment rate to decline to below 4 per cent later this year and remain below 4 per cent next year. If this comes to pass, it would be a significant milestone.
Australia has not experienced unemployment rates this low since the early 1970s, almost half a century ago. The main source of uncertainty about the outlook continues to be COVID-19. The pandemic is not yet behind us and it is entirely possible that there will be more outbreaks.