FXstreet.com (Barcelona) - Despite the upbeat Australian jobs data today, NAB seniro economist Spiros Papadopoulos expects that "given the weakness in the leading indicators of employment, in particular job ads and the NAB Survey employment index, we expect that employment growth will ease back in coming months."
Mr. Papadopoulos adds: "That will see the unemployment rate continue to trend higher, rising towards 5.5% in early 2013. Slower economic growth next year will also weigh on the labour market. GDP growth in 2013 is forecast at 2.5%, below this year’s 3.5% pace. The upward trend in unemployment will be a key factor behind the RBA cutting interest rates further next year."
Mr. Papadopoulos adds: "That will see the unemployment rate continue to trend higher, rising towards 5.5% in early 2013. Slower economic growth next year will also weigh on the labour market. GDP growth in 2013 is forecast at 2.5%, below this year’s 3.5% pace. The upward trend in unemployment will be a key factor behind the RBA cutting interest rates further next year."
