The reason for the decline in Australia’s unemployment rate, at odds with forecasts offered by the Reserve Bank of Australia and treasury earlier this year, continues to be debated by the markets, Business Insider reported. RBA governor Glenn Stevens reasoned: The economy is growing faster than what had been previously reported, potentially leading to an upgrade when Q2 GDP data is released next month; Australia’s trend growth rate may be lower than the 3-3.25% level that many, including the RBA, currently use, leading to the stabilization in unemployment or slower wages growth which, despite sub-trend economic growth, is allowing employment growth to remain robust.
