“It is a sad state of affairs to realise that the current crop of Australian policymakers have effectively given up on reducing unemployment.
Treasury reckons that the lowest the unemployment rate can go without there being a wages and inflation breakout is around 5.25%. The Reserve Bank of Australia notes something similar, forecasting that even when the economy is growing strongly at an above-trend pace, the unemployment rate will hover between 5 and 6%.
And it seems to be a peculiarly Australian issue.”
