The jobs market is too strong, and the unemployment rate too low for the Reserve Bank to stamp down inflation.
RBA deputy governor Michele Bullock says an unemployment rate of around 4.5 percent is roughly the lowest possible level that’s consistent with the RBA’s two-to-three per cent inflation target.
The jobless rate has been stuck well below four percent for months on end, coming in below expectations at 3.6 percent in May.
The rapid economic recovery from the COVID-19 pandemic has pushed Australia “at or even perhaps above” estimates of full employment, which is basically when people are able to find a job without having to search for too long….