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WHAT IS THE WELLBEING FRAMEWORK?

* The first national wellbeing framework outlines five themes and 50 indicators to measure progress in Australian society and its economy

* The indicators track how healthy, secure, sustainable, cohesive and prosperous Australians are

* They will be used along with traditional economic measures like GDP, employment, inflation and wages data

WHAT HAS IMPROVED IN THE PAST TWO DECADES?

* Life expectancy

* Trust in others and in Australian public services

* Representation in parliament

* Household income and wealth

* Literacy and numeracy skills at school

* Education attainment

* Job opportunities and satisfaction

* Emissions reduction

* Resource use

* Acceptance of diversity

* Innovation

* Feeling of safety

WHAT HAS DETERIORATED?

* Prevalence of chronic illnesses

* Online safety

* Access to care and support services

* Making ends meet

* Homelessness

* Trust in national government

* Biological diversity

* Skills development

* Productivity

WHAT HAS MADE LITTLE PROGRESS?

* Overall life satisfaction

* Access to justice

* Mental health

* Income and wealth inequality

* Secure jobs

© AAP 2023

Aggressive interest rate hikes are doing little to solve supply-side drivers of inflation, a prominent economic advisory group warns.

Deloitte Access Economics forecasts suggest the central bank has already lifted rates too far in the fight against sources of inflation over which it has minimal influence, only serving to dampen Australia's economic growth outlook.

The group has repeatedly urged the central bank to end its tightening cycle and maintains it has done too much.

The Reserve Bank of Australia opted to keep interest rates on hold in July, after 400 basis points of tightening aimed at taming runaway inflation since May 2022.

Lead author of the updated set of forecasts, Stephen Smith, said most of the inflation in the system had been fuelled by supply-side issues such as global shipping costs, a disorderly energy transition and disruptions to construction - none of which respond readily to higher interest rates.

Additionally, the full force of the increases is so far yet to be felt.

"Overall, the profile for the normalisation of inflation is achievable with the monetary policy decisions already taken," Mr Smith said.

The economist said a broader set of policies were needed to tackle supply-side challenges including fiscal policy, productivity-enhancing investments, tax policy to boost prosperity and competition policy to erode market power.

Market concentration in the banking, airline, supermarket, insurance and telecommunication sectors was flagged as a driver of poor productivity growth and higher prices, although Mr Smith said there was no evidence of "systemic price gouging and excessive profits" as a source of inflation.

"But are there examples of market power, weak competition, duopolies and oligopolies in key sectors, which are likely contributing to poor productivity growth and higher prices for some goods and services? Absolutely."

Despite surprising resilience in the global economy, particularly in the US and parts of Europe, Deloitte Access Economics has shaved back its forecasts for Australia's economic growth.

It is now predicting growth slow to 1.4 per cent in 2023, down from a prediction of 1.5 per cent three months earlier.

The economic activity is well below the average annual rate of 2.6 per cent in the decade before the pandemic.

Mr Smith said the outlook was worse when population growth was removed, with a deep per-capita recession expected over the next two years.

"In 2025, economic activity per person in Australia is expected to be around the same as in 2021, indicating that prosperity has stalled."

The group's other economic forecasts have not shifted much.

On inflation, the forecasters see inflation cooling to 3.9 per cent in 2023/24 and hitting the target range by 2024/25.

Unemployment is expected to drift up to 4.6 per cent by 2024/25.

© AAP 2023

The Australian labour market has shaken off a series of interest rate hikes and a slowing economy for another month.

The official labour force data showed the unemployment rate hanging on at 3.5 per cent in June, after the May result was revised down.

Economists expected another show of strength in the jobs market but few predicted the unemployment rate sinking lower than the amended May result of 3.6 per cent.

About 32,600 people found work in June, which was also above economists' expectations, but down from the bumper 76,500 result in May.

The participation rate actually edged lower, to 66.8 per cent, but the 0.1 percentage point slip was down from the record high of the previous month.

Every state and territory except South Australia recorded a jobless rate below four per cent, with NSW notching an ultra-low 2.9 per cent unemployment rate for June.

AMP Australia economist Diana Mousina said unemployment was usually the last thing to turn before growth tapers off.

She said the persistent strength in the labour market was not surprising, and came in slightly below the RBA's expectations for a 3.6 per cent jobless rate by June.

Ms Mousina said the robust job report kept another 25 basis point hike in August "very much alive".

St George economist Jameson Coombs said the labour market was still readily soaking up the influx of workers coming in since borders reopened, with the working-age population surging 2.8 per cent in the past 12 months.

Mr Coombs said demand for workers was outrunning the massive surge in supply, which would make it difficult to return inflation to the Reserve Bank's two to three per cent target range.

"The result all but confirms that the labour market remains unquestionably strong," he said.

The economist said the data added weight to the argument for more tightening, although he noted monetary policy hits with a lag.

The upcoming quarterly inflation report, due next week, will factor more prominently in the next cash rate decision.

The RBA board will be gunning for a substantial softening in the consumer price index to counter the robust jobs read.

The index rose seven per cent in the 12 months to March.

Employment Minister Tony Burke said all job gains were a step in the right direction despite concerns the tight labour market was hindering the fight against inflation.

"As far as the Albanese Labor government is concerned, when somebody wants a job and gets a job, that is a success," he said on Thursday.

Shadow treasurer Angus Taylor said there was a concerning trend beneath the strong labour force report.

"What we see in these numbers is Australians working more for less," he said.

Mr Taylor pointed to a substantial increase in hours worked in the past year at the same time as productivity growth had stalled and the economy was slowing.

The unemployment rate is broadly anticipated to drift up as higher interest rates dent demand and lessen the need for workers.

A range of leading indicators, such as job vacancies and hiring intentions, suggest the jobs market will soon start to loosen.

Flinders University economics academic Ilke Onur said job losses were coming, with cuts announced by Telstra, the banking sector and other industries.

"With very low unemployment, below the natural rate of unemployment, in the face of rising interest rates and cost of living expenses, it is not surprising the banking industry and other corporations are downsizing," he said.

© AAP 2023