Dismal Labour Force Data Demand a Policy Response The soggy, sub-trend pace for Australian economic growth continues to take its toll on the labour...

Dismal Labour Force Data Demand a Policy Response The soggy, sub-trend pace for Australian economic growth continues to take its toll on the labour market. The unemployment rate was 6.4 per cent in January, a 12 and a half year high and it locked in 8 straight months of unemployment at 6 per cent or more. The last time this happened was in 2003 and that was when the unemployment rate was on the way down from levels at 8 and 9 per cent. With the labour market so soft, it is little wonder consumer demand is muddling along, sentiment is erring on the side of pessimism and wages growth remains at a record low. The missing ingredient for employment is economic growth. Anything below 3.25 per cent for real GDP growth means that unemployment will be skewed up and no forecasters ,including the RBA and Treasury, have a forecast that has real GDP above that pace in any reasonable forecast horizon. For the full article, click here: (VIEW LINK)