Member Login
Economics update | November 4, 2022
04 Nov 2022
RBA increases cash rate by 25 basis points
For the second consecutive month, the Reserve Bank raised the cash rate by 25 basis points. This follows 50 basis point increases in each month from June to September and takes the cash rate to 2.85 per cent. With lagging effects of rate rises on the economy, the RBA’s more reserved increases allow for more time to accurately judge the market effects. Nonetheless, Governor Philip Lowe has expressed the RBA’s willingness to return to larger increases if the economic situation requires.
This rise follows a CPI increase of 1.8 per cent in the September quarter and 7.3 per cent over the year. Correspondingly, the RBA has also increased their inflation forecast to 8 per cent at the end of 2022. The Federal October Budget, however, maintained their 7¾ per cent forecast.
The US Federal Reserve increased their cash rate by 0.75 per cent, raising their overall cash rate to between 3¾ and 4 per cent. As a result, Australia has become further misaligned with the US, being a whole percentage point behind the US cash rate. Tied closely to the US economy, this discrepancy will dampen the competitiveness of the Australian dollar, put further pressure on the price on imports, and hinder economic growth.
‘2020-21 Barriers and Incentives to Labour Force Participation’ released
The ABS has released its ‘2020-21 Barriers and Incentives to Labour Force Participation,’ identifying 2.8 million Australians in 2020-21 who did not work full time and either wanted a job or were working part-time and wanted to increase their working hours. Engaging these people to participate or increase their participation in the workforce will help address the current labour and skills shortages.
Caring for children was the most common reason (24.6 per cent) women were unavailable to start a job or work more hours within four weeks, whilst for men it was long-term sickness or disability (34.5 per cent). The greatest incentive to join or increase participation in the labour force for women was the ability to work part-time hours (48.8 per cent), and for men it was finding a job that matches skills and experience (42.9 per cent).
Stemming from new Government investments, the ABS will now collect and release annual data, complemented by a quarterly partial data release, on barriers and incentives to labour force participation.
Related Posts
Workplace Relations
26/07/2024
Modern Awards – Casual Employment Term Last week, the Fair Work Commission President, Justice Hatcher, made a statement announcing proceedings on the Commission’s own initiative to determine...
Workplace Relations
19/07/2024
Modern Awards Review The Fair Work Commission published its report on the Modern Awards Review 2023-24 yesterday, along with a statement from Fair Work Commission President, Justice Adam Hatcher,...
Small Business
19/07/2024
Small Business Survey The Small Business Committee met this week, and members received a briefing on the results of the Small Business Survey ahead of...
Trade
19/07/2024
There is still time to join the next ACCI Trade Policy Committee on 1 August, at 2:00 pm AEST, featuring special guest speaker George Mina. ...
Tourism
19/07/2024
Sustainable Aviation Fuel submission Australian Chamber - Tourism made a submission to the government's consultation on low-carbon liquid fuels this week. The submission outlines the...
Employment & Skills
19/07/2024
Apprenticeship Incentives Review The 'What We Heard' summary paper from the Strategic Review of the Australian Apprenticeship Incentive System was released this week. The critical...
Economics
19/07/2024
Unemployment rate slightly up Labour force statistics released this week highlight that the unemployment rate increased slightly from 4 per cent in May to 4.1 per cent...
Workplace Relations
12/07/2024
Right to Disconnect The President of the Fair Work Commission, Justice Adam Hatcher, has published a statement and the draft modern award term for the...
Trade and International Affairs
12/07/2024
ACCI Trade Committee Meeting The next ACCI Trade Policy Committee will feature special guest speaker George Mina, followed by a short Q&A session. George is...
Data, Digital and Cyber
12/07/2024
Upcoming forum meeting The Data, Digital & Cyber (DDC) Forum will hold a meeting on Wednesday 17th July from 10:30am to 12pm AEST. Please contact Ross Creelman for more information.
Small Business
12/07/2024
Upcoming committee meeting The next meeting of the Small Business Committee will be held online on Friday, 19 July from 10:30 am-11:30 AEST. The meeting...
Work, Health and Safety
12/07/2024
Minister for Employment and Workplace Relations Tony Burke has endorsed ACCI's nomination of Jennifer Low, director of health, safety, resilience, and digital policy, to the...
Economics
12/07/2024
Productivity Commission report on economic mobility The Productivity Commission report on economic mobility released this week shows that, on average, Australia’s long-term economic growth has led...
Employment and Skills
12/07/2024
New NCVER data release: Government-funded students and courses 2023 According to the recent National Centre for Vocational Education Research (NCVER) release, an estimated 7.1 per cent...
Trade and International
5/07/2024
ACCI Trade Committee Meeting Join us at the next ACCI Trade Committee on Thursday, 1 August, at 2:00 pm AEST. This meeting will feature a...
Small Business
5/07/2024
Payment times reforms pass Amendments to the Payment Times Reporting Act 2020 passed Parliament this week. The amendments implement recommendations made through the Statutory Review conducted by Dr Craig...
Work, Health & Safety
5/07/2024
Engineered stone ban is now in effect The prohibition on the manufacture, supply, processing and installation of engineered stone benchtops, panels and slabs commenced on...
Energy
5/07/2024
Nature Positive Bill introduced The Nature Positive Bill was introduced to Parliament this week. This Bill establishes a new Environment Protection Agency (EPA) responsible for...
Economics
5/07/2024
Future Made in Australia The Future Made in Australia Bill 2024 and Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 was tabled in...
Workplace Relations
5/07/2024
Changes from 1 July From 1 July (last Monday) a series of changes have taken place in the workplace relations system. Employers must be aware...