Australia39;s employment growth outpaces U.S., euro zone
Labour shortage still prevalent in care sector, big jobs driver
Demand for workers still running hot even with higher supply
Rate cut not fully priced in until May 2025

SYDNEY, Nov 28 Reuters Australia39;s worldbeating labour market is one of the main obstacles stopping the country39;s central bank from joining global peers in reversing the most aggressive policy tightening cycle in decades.

The Reserve Bank of Australia was relatively late in joining the worldwide race to rapidly tighten monetary policy back in 2022 and did not raise rates as much as other banks, arguing it needed to ensure efforts to hose down inflation didn39;t push up unemployment.

More than two years on, Australia39;s benchmark rates though still below those in the U.S. may not see their first cut for half a year, according to market pricing, as a labour crunch keeps inflationary pressures elevated.

Duncan McKimm, who runs an aged care facility in the town of Grafton, about 600 km north of Sydney, has struggled to hire nurses.

We39;ve been running ads for two years or more to find those. So it39;s not that we haven39;t been trying, said McKimm, CEO at Clarence Village. It currently employs seven nurses and needs another three or four to help care for 74 senior residents.

If we could, we39;d employ these people but…there aren39;t actually enough in Australia.

His inability to fill those vacancies means he is unable to meet new…