Wages set to rise, but interest rates too

September 14, 2017

Labour force figures are expected to show a further 20,000 increase in employment in August.

The recent strength of the jobs market appears to have done more for the mood of the Turnbull government than workers themselves.

Consumer confidence has remained under a cloud with pessimists having outnumbered optimists throughout 2017, despite the solid rise in the number of people employed.

Westpac chief economist Bill Evans attributes this to pressures on family finances, concerns around interest rates, deteriorating housing affordability and rising energy prices.

Thursday's labour force figures are expected to deliver the government more cheery news.

Economists expect the economy added a further 20,000 jobs in August, building on the 27,900 increase in July and the 240,000 over the financial year to end-June.

The jobless rate is expected to remain at 5.6 per cent.

The report will also include a quarterly update on underemployment - people in work but seeking additional hours.

In May, the number of people considered underemployed was 1.1 million, a rate of 8.8 per cent and just below February's 8.9 per cent record high.

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