ACTU renews calls for rate cuts as unemployment rises

The ACTU is calling on the RBA to cut the cash rate at its next meeting, following today’s ABS data showing a rise in unemployment to 4.5 per cent – the highest it has been in over three years.

Despite RBA Governor Michele Bullock’s recent claim that the labour market remains ‘tight’ and that unemployment would ‘drift up’ without major job losses, today’s figures show the unemployment rate is higher than RBA expected it to be in the next three years, suggesting a weakening jobs market and greater uncertainty for working people.

Employment growth has slowed over the last five months, even as people have joined the labour force to look for work. Unions argue that the RBA should follow its own charter and contribute to the ‘maintenance of full employment’ by cutting the cash rate at its next meeting in November to ensure that the economy does not slow further and that workers who want to work are able to.

Quotes attributable to ACTU President, Michele O’Neil:

“The RBA’s charter is clear on its mandate to support the maintenance of full employment. Cutting rates is essential to uphold that charter and protect jobs.

“The RBA did not forecast the unemployment rate to get this high in the next three years. The economy has clearly slowed more than it expected. It needs to cut rates to make sure the economy does not slow further because it held interest rates too high for too long.

“Today’s data shows that holding rates at restrictive levels has meant higher unemployment and more pain for working people.”