Unemployment and job insecurity are starting to bite

Westpac-McDermott Miller's reporting a 13 point drop in employment confidence for its June quarter index - the lowest since the first Covid lockdown ended.

Westpac Senior Economist Michael Gordon says the labour market's typically one of the last factors to respond in an economic cycle.

He says there's still a way to go before we see unemployment peaking - even with economic growth starting to pick up.

Michael Gordon says Westpac's forecasting unemployment will peak at 5.5 percent.

He says right now we're at 4.3 percent - so effectively only halfway through the rise.