According to economic predictions, Australia’s labor situation is expected to improve significantly in the near future.
EconoTimes reported that the Westpac-Melbourne Institute unemployment expectations index dropped to 13.7 percent this month, representing a decline of 1.6 percent. These figures followed a decline of 1.2 percent in September and 0.9 percent in August. Overall, the index has dropped by 5.2 percent so far this year. The source explained that this index is created using a number of business surveys, and is considered to be an accurate forecast of Australia’s labor market.
Business Insider reported that the Westpac-MI consumer sentiment index was also extremely positive. According to the source, this index improved by 4.2 percent in October to reach 97.8. This survey measures the family finances and economic expectations of Australian households, and also determines whether people think it is a good time to buy major items, like expensive appliances.
The source explained that the growth in the unemployment expectations index directly influences the results of the results of the consumer sentiment index. As Australians feel more confident about the state of the nation’s labor market, they will increase their spending and put money back into the economy.