The flow of net emigration to Australia has reversed over the past 12 months, and is the largest net inflow for 25 years.14 The differences in the composition and drivers of migration in the current cycle help explain why inflationary pressures have been more muted than expected. Labour demand and employment Following the 2007–08 global financial crisis, employment fell by over 55,000 in 2009.
Since then, labour demand has recovered strongly (figure 6) and employment increased by over 8 percent in the past three years, well in excess of historical average growth rates.