Australian Bureau of Statistics jobs numbers due on Thursday are expected to show the jobless rate ticked higher in July, as employment growth moderated.
Commonwealth Bank economists are forecasting a rise in the unemployment rate to 4.2 per cent, from the June rise to 4.1 per cent.
Westpac economists expect the jobless rate to remain at 4.1 per cent
But economic teams at both banks are tipping a 20,000 lift in employment, which would be a more modest result than the 50,200 jobs created in June.
The economy has been able to absorb a growing workforce due to high migration, keeping job growth strong.
However, the domestic jobs market has been gradually easing as well, as the economy slows in response to higher interest rates and elevated inflation.
"We expect employment growth to move more clearly below the pace of population growth in the period ahead, in line with recent evidence from business surveys," Westpac economists said in a client note.
June's strong employment growth added to concerns the Reserve Bank of Australia would hike interest rates at the August interest rate meeting.
The central bank ultimately kept the cash rate on hold at 4.35 per cent but struck a hawkish tone that reflected its concerns about ongoing price pressures in the economy.
Governor Michele Bullock also pushed back on expectations of a near-term cut in interest rates, warning that the central bank board was prepared to hike again.
7°C