WA’s unemployment rate has ticked up again after two months of decline, rising to 3.9% in April.
While a considerable rise from 3.4% in March, this is still below the national reading of 4.1% and remains the second lowest in the nation, behind only the ACT. Â
This uptick was driven by an increase in the number of people unemployed combined with a fall in the size of the labour force. However, with more people than usual indicating they had a job they were waiting to start, it’s likely the unemployment rate will drop again when the next set of data is released in June. Â
Wage growth looks to have peaked Â
Wage growth may have finally peaked, with the latest Wage Price Index data revealing wages grew 4.2% over the year to March. While still solid, this is down from the 4.7% recorded in December but remains slightly higher than the 4.1% recorded nationally.
With wages growth remaining above the rate of inflation, WA workers have now experienced a return to annual real wages growth for two consecutive quarters, a welcome development given the cost-of-living pressures still facing many households. Â
Federal Budget records second consecutive surplusÂ
The Federal Budget was handed down last week, with a surplus of $9.3 billion forecast for 2023-24. This is the Government’s second consecutive surplus, although the last for the foreseeable future — a $28.3b deficit is forecast for 2024-25 and further deficits are expected in the remaining outyears.
READ MORE: Manufacturing investment, tax breaks highlights in Federal Budget
Economic forecasts reveal the Government has downgraded its expectations for GDP growth over 2024-25, now expecting the economy to grow 2.0%. However, it is optimistic that inflation is under control, suggesting it could return to target by the end of this year. Â
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