RBA crashes economy into wall of woke

The RBA has driven the Aussie economy straight into a wall of woke. How out of touch is this from yesterday’s statement?

The labour market remains very tight, although conditions have eased a little. The unemployment rate remains at close to a 50-year low. Employment fell in January, but this partly reflects changing seasonal patterns in labour hiring. Many firms continue to experience difficulty hiring workers, although some report a recent easing in labour shortages. As economic growth slows, unemployment is expected to increase.

It is going to increase all right. More than it needed to. It has been obvious for six months that the labour market has been loosening as cheap foreign labour floods in:

Despite low unemployment, the number of applicants per job has already normalised and will now overshoot:

Unadjusted Roy Morgan unemployment has been rising for more than six months. The total growth in the workforce has easily outpaced job creation. Why? Immigration supply shock. The dubious ABS unemployment numbers will now follow:

Wage growth has rolled over and will shock everybody to the downside through 2023:

Once again, the RBA is going to massively undershoot its wages target, as it has done time and again since mass immigration has been used to drive the economy instead of complementing it:

Just as throughout the lost decade of the 2010s, the RBA’s refusal to mention or track the permanent immigration supply shock has led it to overtighten.

Even after the experience of COVID and closed borders, which proved beyond a shadow of a doubt that mass immigration is the number one marginal price factor in the labour market, the RBA refuses to incorporate the obvious.

It’s one thing to silence everybody out of fear of hate speech.

It is quite another to allow woke paranoia to govern your macroeconomic management such that it drastically impoverishes the polity.