This means that the GDP growth that we have recorded may have been closer to the recent growth in the economy’s productive capacity than previously thought. If so, that would have left the economy with a little less spare capacity (a lower unemployment rate) than had been expected. Yet this can only account for part of the unexpected adjustment in the labour market.
Most notably, labour demand has also picked up. That is evident in the rise in employment relative to the population. 1  Net immigration had been very high for a number of years and was an important means of addressing skill shortages. Immigration was especially significant in Queensland and Western Australia, where demand for labour from the resource investment boom was most concentrated.