Unemployment will remain far below past levels due to demographics and this implies long term recruiting challenges. Increasing immigration will be an important response to labour requirements.
Manufacturing and primary industries, like mining, stand out as leaders in both the recovery to 2013 and the later trend growth in the economy. Improvements are partly due to projected strong investment in new technologies and processes. These gains are also related to major utility projects that expand electrical generation and distribution capacity. In primary industries and manufacturing these gains are making up lost ground as these industries declined over the past decade. Relatively strong output and employment growth bring these sectors back to previous peaks between 2013 and 2015.
The government and non-residential construction sectors follow a counter cyclical path. Infrastructure projects, financed by government, help to limit the impact of recession and non-residential construction projects (including some industrial and utility expansion) provide jobs in 2009 and 2010. As the recovery gains momentum after 2011, government spending is cut back to reduce the accumulated deficits. This post-recession slowdown holds back construction from 2011 to 2013, but non-residential projects – especially in utilities – provide work late in the scenario.