ACOSS: It’s time to abandon the ‘full employment’ fiction

Wednesday 14 November 2018

For several years, economists have projected a rebound in wages growth as Australia’s unemployment falls towards the NAIRU (non-accelerating inflation rate of unemployment), which the RBA claims is around 5.0%.

Indeed, the Federal Budget explicitly forecast a sharp rise in wages growth as unemployment falls to a projected 5.25% for the next three years:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.