Australia’s transitioning economy can be seen in this ANZ chart which shows outside of the mining and public sectors there’s capital investment in other parts of the economy.
ANZ expects the the rotation of growth toward non-mining sectors is likely to be relatively more favourable to Australia’s employment growth overall and is forecasting the unemployment rate to remain steady around 6.3% next year.
“We think the mining investment windback will have an outsized drag on GDP growth relative to employment growth, but won’t necessarily see the unemployment rate deteriorate much further from here,” ANZ economist Savita Singh said in a note today.
“In 2016, we believe a more entrenched recovery in the non-mining sectors, for which there is mounting evidence that we should head in this direction, will see better employment growth prospects and assist in a gradual decline in the unemployment rate.”
The chart below shows investment growth and the weighted employment of various industries.
Rental, recruitment and real estate is expected to have the biggest year-on-year change in investment but when it comes to employment, it’s professional and technical services which has the highest employment change numbers.
Here’s the chart.