Favorable health outcomes in Australia, the design of the JobKeeper and other temporary, and the swift recovery from inactivity had all contributed to a strong bounce-back in the domestic labor market. Despite the rapid recovery in employment in Australia, members noted that wage to a greater extent and had been more subdued than in other countries. In response to the pandemic, the labor market adjustment in the form of adjustment to hours worked and widespread wage restraint. In contrast, in some other countries, including the , the adjustment had mainly been through a decline in employment.
Members discussed cross-country differences in population growth stemming from international. In some countries, including Canada, which had experienced high and rising rates of immigration in the before the pandemic, population growth had slowed substantially. In New Zealand, some of the slowdowns in population growth had been mitigated by the return of expatriate New Zealand citizens during the pandemic; in turn, it was likely that this had contributed to the increase in housing demand in New Zealand.
The decline in population growth in Australia had been particularly steep relative to other countries; in the three months to September, the Australian population had declined for the firstto a reversal in net overseas migration. However, in countries where net migration had contributed less to population before the pandemic, including the United States, population trends had little changed in recent quarters.
Members observed that corporate profitability during the United Kingdom, subsidy payments had not offset the effect on business profits of the decline in output. In Australia, had fallen less than elsewhere, and fiscal support had been targeted more towards wage subsidies than loan guarantees. The JobKeeper program has particularly supported industries where labor costs comprise a high share of the total cost base.had varied considerably across countries. The size and composition of fiscal support for the corporate sector contributed much to this outcome. In the euro area and the
Members discussed recent international developments by noting that the global economic outlook remained more favorable than a few months earlier. However, the near-term outlook had become more variable across countries. This partly reflected cross-country differences in infections and progress with . The outlook for growth in the United States had improved, and inflation was expected to be a little higher due to the size and composition of fiscal stimulus there.
While a morein the United States would support global growth, the outlook for other advanced economies was less optimistic as the decline in output in 2020 had been more significant. The less fiscal stimulus had been provided, and some countries still contended with lockdowns. As a result, substantial spare capacity was likely to persist in most advanced and emerging economies. This was likely to keep inflationary pressures well contained, despite the rebound in commodity and other input .