Graph 11  The Reserve Bank has recently spent some time trying to understand what is happening here and what it says about the balance of supply and demand in the labour market. On the supply side, demographic changes are potentially an important factor. As with many other countries, the Australian population is ageing.
Beyond this, digitalisation and climate neutrality remain two core aspects we must heed if we are to prepare our economies well for the future. In both these areas, policymakers need to set a clear course and create a suitable legal framework to ensure that the changes go in the right direction.