Australia is clearly giving priority to employment vs inflation. According to C.Joyce, all the recent growth of the Australian economy is explained by the public sector, which is also creating a very large part of new jobs (80 %+). But it has a major impact on inflation and interest rates : as the level of employment remains high (cf decrease of unemployment published today), RBA is reluctant to decrease interest rates. Such a choice has also consequences on productivity growth.
Overall, interesting to see that public sector spending and population growth are driving the economic growth. Unfortunately, it has also major impacts on consumption / person (inflation impact) and private sector which are now both declining.
