Inflation figures steady as labour market shows resilience

By Newsdesk

March 25 2026
Share

In a landscape marked by economic uncertainties, the latest inflation data has been met with cautious optimism by industry leaders. The inflation rate has edged down slightly to 3.7%, a development that has prompted a nuanced response from business sectors. Despite this slight dip, Ben Thompson, CEO of Employment Hero, warns against assuming this signals a shift in monetary policy.

Inflation figures steady as labour market shows resilience

"Inflation nudging down slightly isn't a green light for rate cuts, not when the labour market is also holding strong," Thompson stated. His remarks underscore the complexity of the current economic situation, where a robust labour market may deter the Reserve Bank of Australia (RBA) from considering interest rate cuts in the near future.

Thompson's insights are backed by Employment Hero's data, which reveals a 6.8% increase in hiring year-on-year. This growth is one percentage point stronger than the same period last year, indicating a resilient job market. "Our data shows hiring up 6.8% year-on-year, one percentage point stronger than the same period last year, with wages up 5.4% and outpacing CPI," he explained. This wage growth, which surpasses the Consumer Price Index (CPI), suggests that workers are experiencing real income gains, a positive development for households.

However, Thompson notes that this wage growth could also be a factor in the RBA's cautious stance. "Workers are seeing real gains, which is a good thing, but the RBA is looking at that same picture and seeing an economy that's still running too warm to justify easing," he said. The RBA's perspective highlights the delicate balance between sustaining economic growth and controlling inflationary pressures.

In response to these economic conditions, Australian businesses are not sitting idle. Thompson observed that companies are actively adapting to the evolving landscape. "So what are we seeing our businesses do? They’re not waiting around - they’re adapting to the current circumstances in real time," he noted. This adaptability is reflected in the surge of job listings requiring artificial intelligence (AI) skills on Employment Hero's platform.

Since the fourth quarter of 2024, there has been a remarkable 13-fold increase in such job listings. Interestingly, 75% of these positions are not for traditional tech roles like engineers or data scientists. Instead, they span various sectors including customer service, marketing, healthcare, and accounting. "It is awesome to see Aussie SMEs investing in productivity like this, and they definitely can't bank on rate cuts to ease the pressure," Thompson remarked.

This trend indicates a broader shift towards integrating AI and technology across different industries, as companies seek to enhance productivity and efficiency. The emphasis on AI skills in non-tech roles underscores the growing importance of digital literacy in the modern workforce.

The current economic scenario presents a mixed picture. While inflation has slightly decreased, the strong labour market and rising wages suggest that the RBA may hold off on rate cuts for now. Businesses, meanwhile, are leveraging technology to navigate these challenges, positioning themselves for future growth.

As the economic landscape continues to evolve, stakeholders will be closely monitoring the interplay between inflation, employment, and monetary policy. For now, the focus remains on adaptability and innovation, as businesses strive to thrive in an environment marked by both opportunities and uncertainties.

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

sections

most read

Most read

Age Pension increase prompts Australians to review their finances

Latest Podcast

Australia’s inflation surges amid Iran conflict, prompting potential RBA rate ...

Resources

There is $17.5 billion in lost and unclaimed super across ...

Invest