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IMFCountryReportNo.26/39

AUSTRALIA

SELECTEDISSUES

February2026

ThispaperonAustraliawaspreparedbyastaffteamoftheInternationalMonetaryFund.

ItisbasedontheinformationavailableatthetimeitwascompletedonJanuary21,2026.

Copiesofthisreportareavailabletothepublicfrom

InternationalMonetaryFund•PublicationServices

POBox92780•Washington,D.C.20090

Telephone:(202)623-7430•Fax:(202)623-7201

E-mail:publications@Web:

InternationalMonetaryFund

Washington,D.C.

©2026InternationalMonetaryFund

AUSTRALIA

SELECTEDISSUES

January21,2026

ApprovedByPreparedbyMonicaPetrescu,JohnSpray,NiWang,and

AsiaandPacificYuanyanSophiaZhangwithcontributionsfromSamikshya

DepartmentSiwakotiandDanZheng.

CONTENTS

AUSTRALIA:UNPACKINGLABORMARKETRESILIENCE____________________________3

A.ASnapshotofLaborMarketDynamicsinAustralia__________________________________3

B.Paradox1:PersistentlyLowUnemploymentRatesandHighJobVacanciesDespitea

CoolingEconomy_______________________________________________________________________7

C.Paradox2:PersistentStrengthofL