The Employment White Paper has revealed the government and the Reserve Bank fundamentally disagree on “full employment”.
The White Paper, and the Treasurer Jim Chalmers, defines full employment as “everyone who wants a job should be able to find one without searching for too long.”
That would imply that with more than 530,000 people still out of work, the unemployment rate should fall below the current level of 3.7%.
The RBA, on the other hand, thinks it should be 4.5% to stop inflation accelerating.
So what does that mean? Interest rates could keep rising.
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