SMH coverage. TheWest coverage.
Was it at school or Uni I sat through a lesson that taught that in the modern era full employment was really 5% because we could never again go lower? The SMH thinks it’s unlikely to cause interest rates to rise, I don’t agree. That last 4.4% would be 75% unemployable.The employee shortage is phenomenal here in WA, if the rest of the country starts to get that way wages will explode even more so (remember truck drivers start on 100k here already), and that sort of money in the economy, coupled with the rising costs of goods created by higher marginal costs means higher inflation and higher interest rates. Time to start increasing the mortgage payments before the crunch comes 🙂
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5p is ‘ideal’ unemployement – still enough demand for jobs to have the right balance with wage demand etc. the prob at 2% is that wages skyrocket, and if you havev over-protection in the workforce and no flexibility, it means that wages are hard to keep back down so companies get squeezed as things go down.
great results in au, but no reason why it can’t be even betterr with a more fluid job market