Unemployment to rise in both countries

Australian employment rose in July but more timely data suggest it may have started to decline since then. That makes sense given the renewed and tighter lockdown in Melboune. And we expect further rises in the unemployment rate to keep wage growth subdued in the months ahead. New Zealand has also gone back into lockdown which along with the winding down of the wage subsidy schemes is likely to contribute to rising unemployment in the coming months.