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The Times

Why there's no magic jobless rate to increase Australians' wages

  • Written by Jim Stanford, Economist and Director, Centre for Future Work, Australia Institute; Honorary Professor of Political Economy, University of Sydney
Why there's no magic jobless rate to increase Australians' wagesShutterstock

With the official unemployment rate now 4.2% – the lowest since 2008 – Prime Minister Scott Morrison has predicted a rate “with a 3 in front of it this year”. The Reserve Bank of Australia agrees, forecasting unemployment below 4% in coming months.

Many economists have been surprised at how quickly employment has...

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