Macquarie's Richard Gibbs puts it this way:
"[S]uccessfully predicting employment growth is only half the problem. For policymakers, they must also anticipate how that outlook will affect wages growth and hence inflationary pressures. And it remains the case that a slowdown in population growth – by reducing the pool of potential workers – could be consistent with accelerating wages. For these reasons, the RBA is likely to remain highly wary of labour market developments into 2011."
