Unemployment levels are expected to remain at the present 25-year lows of around 3.4% when data from the quarterly household labour force survey is released today.
Maintenance of the low unemployment figures will send a signal to the Reserve Bank that despite the softening economy, inflation through consumer spending remains a problem.
The central bank is keeping the interest-driving official cash rate at the highest in the developed world in its attempts to push inflation below its 3% maximum threshold.
Westpac research economist Dominick Stephens said while the Reserve Bank, and Westpac, were forecasting confirmation of their forecast 3.4% unemployment today, the central bank was "overplaying" its longer term forecast of unemployment rising to 5% by 2010.
"We are forecasting the economy to recover by 2009, not slow, with unemployment at 4% [not the Reserve Bank's 5% forecast]," Mr Stephens said.
He expected today's data, which he described as "lagging" for 2008 economic conditions, would reflect the positive economy of 2007, with quarterly unemployment coming in at 0.2%.
Earlier in the week, surveys reported a continuation of wage claims in the quarter to March and the annual wage rate increase unchanged at 3.5%.
With households increasingly feeling the economic pinch - in food, fuel and interest rates - wage claims will be made this year to offset costs, which will not sit well with the Reserve Bank attempts to quell inflation.
