The Price of People, not Petrol driving Inflation

Despite last weeksí rise in interest rates,The Olivier Internet Job Index rose 2.22% (seasonally adjusted) in July, creating yet another new record of 232,283 new job ads online.

ìOn past experience the job market misses a beat when we have an interest rate rise, but then kicks back in. This suggests that the market can sustain this rise, and we expect that the RBA has taken that into account when determining it,î Robert Olivier, a Director of the Olivier Group says.

The Australian inflation rate has now risen to 4%, and according to Olivier Internet Job Index releases it is likely to be wage pressures contributing to the rise, rather than the price of petrol or bananas. ìThe danger is wage-driven inflation. When CPI goes up, employees want more money to compensate for inflation as well as for productivity increasesî.

Although job advertisements have reached record levels, there are still severe shortages in many fields. If your organisationsí sourcing strategies are failing to attract the right quantity or quality of talent call Olivier Group on 9262 5344 and put our team to work on your behalf.

Click on the following URL to see the full report and how your sector fared.