ACOSS is calling on the Reserve Bank of Australia to cut interest rates tomorrow amid clear signs of the labour market slowing.
“The economic risk now lies with jobs and incomes growth, with ABS data showing that there were two people unemployed for every job vacancy, the highest ratio since 2021,” said ACOSS CEO Dr Cassandra Goldie.
“Unemployment is up by 50,000 people this calendar year, with annual employment growth also having reduced substantially over the same period.
“Underlying inflation remains well within the RBA’s target range so there is no justification for maintaining interest rates at punishingly high levels.
“Rising unemployment means more people on brutally low income support payments, and more people trapped in a failing employment services system.
“We urge the RBA to focus on a declining labour market, which risks further damaging the living standards of those with the least after three years of high inflation. Further rate cuts are essential to support job creation and prevent further rises in unemployment.”
ACOSS maintains that interest rate cuts, while welcome, are not enough to resolve the ongoing living standards crisis.
“The government must step up with targeted support for those doing it toughest, including by increasing social security payments such as JobSeeker and fixing the punitive employment services system,” Dr Goldie said.
“We also need increased investment in social housing and energy efficiency programs to bring down energy bills.”
Contact details:
Lauren Ferri: 0422 581 506