CFMEU - Mining and Energy Division
Employment figures today illustrate extent of RBA mistake on interest rates
Today’s job figures show how soft the labour market is and the degree to which the Reserve Bank missed an opportunity to address serious problems with the Australian economy earlier this week in deciding to keep interest rates on hold.
The National Secretary of the Construction Forestry Mining and Energy Union (CFMEU) Michael O’Connor said today that significant unemployment rises in Victoria, South Australia and Tasmania illustrated the patchiness of the economy.
“The fall in overall unemployment announced today was only possible due to a fall in the number of people seeking jobs.”
“There is a serious problem with our manufacturing and housing sectors and our members and employers in these industries are telling us they need an interest rate cut.”
“The very obvious ‘two speed’ phenomenon in the state by state breakdown also shows why the RBA must move next time on interest rates.”
“All the data from this quarter has pointed to a weakening of economic fundamentals. These employment figures today are further evidence.”
Mr. O’Connor said that the RBA continued to ignore its explicit charter mandate to promote full employment.
“The RBA has some responsibilities to steward the economy in its entirety in a comprehensive way. Certainly manufacturing and construction are shedding jobs and productive, competitive companies are struggling.”
For media comment please call Michael O’Connor on 0418 550 831
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