Australia: Catch-up, overshoot or new trend in employment? – ANZ

Yet another strong employment report in Australia is leaving a few heads scratching given the weakness in Q1 GDP and the prospect of further softness in Q2 explains the analysis team at ANZ.

Key Quotes

“Is the labour market data telling the true story of the economy, or is it overshooting? We think the most likely story is that the employment data is catching-up with other indicators such as ANZ Job Ads, after lagging for a period. For this reason we doubt the strength can continue for much longer, though there is probably still a bit more catch-up to come.”