RBA leaves cash rate on hold as hospitality leads the way for job growth Dec 8, 2020
Data from recruitment agency SEEK indicates that the hospitality and tourism industries are leading the way in job growth.
The industry’s employment rates have bounced back by 142% since February – the highest increase to employment rates in Australia*.
It’s a positive sign that’s mirrored across many industries in Australia, and the Reserve Bank of Australia (RBA) says recent economic data indicates that Australia’s economic recovery is under way.
However, the RBA expects that the unemployment rate will continue to increase, at least in the short-term.
RBA Governor Phillip Lowe said that the high unemployment rate (officially 7%, though the effective rate is thought to be much higher), continues to be an important priority for the RBA.
“The unemployment rate is forecast to decline next year, but only slowly and still to be around 6 per cent at the end of 2022,” Governor Lowe said.
“It will not be until the end of 2021 that the level of GDP reaches the level attained at the end of 2019.”
The RBA left the cash rate on hold at 0.1% for December and does not intend to increase the cash rate until inflation returns to the 2-3% target range. This may not be for at least three years.
*SEEK job ad levels in the four-week period to 22 November 2020.