Labour market data due on Wednesday will likely show wage growth hitting a 10-year high despite a rising unemployment rate, economists say.

Economists from the major banks are picking unemployment will rise to either 4.2 or 4.1 per cent for the third quarter - bouncing back from an unexpected 11-year low of 3.9 per cent in the second quarter.

That was likely to reflect a softening in employment intentions in business confidence surveys and the broader slowdown in economic growth over the past year, Westpac senior economist Michael Gordon said.

Gordon is picking a rise to 4.2 per cent, as

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